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Accurate Analyst Expects Chainlink To Sustain Over 70% Drop: Here’s Why



One of the hottest cryptocurrencies in the past few weeks has been Chainlink (LINK). Compared to Bitcoin, which is up 20% year to date, the asset recently posted a 100% year-to-date gain, rising to become the twelfth largest altcoin by market cap.

Many have looked to LINK’s functionality and adoption, with venture fund Parafi Capital writing in a recent MakerDAO forum post:

“Given its marketcap, liquidity profile, and appetite for speculation, we see value in onboarding LINK into MakerDAO. LINK is valued at over $1 billion and is also one of the most liquid ERC-20 tokens available. The tokens are relatively decentralized with no known “kill-switch” or blacklisting capabilities.”

Yet a trader is fearing the top asset is preparing to undergo a strong reversal from the highs.

Chainlink Setting Up For Bearish Reversal

Chainlink is on the verge of undergoing a more than 70% reversal towards $0.98-$1.00, according to a trader referencing the chart below. Backing this sentiment he looked to the fact the altcoin broke below a key support level while failing to surmount heavy resistance around $4.00.

Chart from @CryptoCapo_

The analyst who made this prediction called that Bitcoin would fall towards the $3,000s earlier this year when no one thought it would happen. He also predicted XRP could bottom around $0.11-$0.13, which it did.

Adding to this, data from blockchain analytics provider IntoTheBlock indicated that throughout segments of last week, there was a strong bid-ask volume imbalance. The site indicated that there was much more selling pressure than bullish volume, indicative of a distribution pattern near a market top.

It’s Time for Bitcoin to Shine

Whatever your thoughts are on Chainlink’s trajectory, analysts say that Bitcoin will soon outperform a majority of altcoins. Should this assertion hold true, that means a drop in Chainlink’s price (or relative drop against BTC) is somewhat inevitable.

The head of technical analysis at crypto research firm Blockfyre argued that all altcoins are poised to underperform. He cited the fact that Bitcoin dominance — the percentage of the crypto market made up of BTC — has started to trend higher:

“A potentially very painful situation developing if dominance breaks out towards the next resistance. Each 1% rise in BTC.D roughly equates to a 6-12% drop against the BTC pairings for altcoins. Hard to imagine that no matter what BTC does that alts dont see a lot of pain,” he wrote in reference to the chart below.

Bitcoin dominance strength

Chart from @Pentosh1 (Twitter)

In a separate analysis, he wrote late last month that fundamentally speaking, the incoming volatility related to the Bitcoin block reward halving will “rekt” altcoins, Chainlink presumably included.

He continued that from how he sees it, altcoins are always a “game of musical chairs” because they rally for reasons not based in fundamentals:

“The reason the alt pumps are unconvincing is because they have followed the same patterns. IEO’s, Interoperability, privacy coins moving together. It’s coordinated as it has been the last 3 years instead of all ships rising together.”

Featured image from Unsplash

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Coin98 gains 1,200% after Binance listing, Ampleforth soars on Aave integration




Few things in the cryptocurrency space generate more hype than a new token listing because the prospect of finding a rare 1000x coin continues to be a top goal of many crypto investors. 

Coin98 (C98) is the most recent example of this phenomenon after the Binance Smart Chain-based decentralized finance (DeFi) solution rallied 1,200% from its initial coin offering price at $0.075 to $0.928 on its first day being listed on exchanges.

Coin98 is the 20th project to come out of the Binance Launchpad and describes itself as “a DeFi gateway for traditional finance users to access any DeFi services on multiple blockchains.”

Along with being listed on Binance, C98 is also available to trade on and MEXC Global and token holders can also earn a yield through staking and liquidity pool options on PancakeSwap (CAKE).

Altcoins post double-digit gains

Bitcoin’s (BTC) rally to $33,000 led to a prolonged boost in several altcoins and data from Cointelegraph Markets Pro and TradingView shows Ampleforth (AMPL), Amp (AMP) and Axie Infinity (AXS) as the top movers over the past 24 hours. 

Top 7 coins with the highest 24-hour price change. Source: Cointelegraph Markets Pro

AXS’s month-long rally picked up steam again after the price rebounded from its lower support touch at $14 and the rally in AMPL demonstrates the benefit of cross-protocol integrations.

Related: Bull or bear market, creators are diving headfirst into crypto

According to Ampleforth’s Twitter, the new-found interest in AMPL is the result of the token being added to the AAVE DeFi ecosystem

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for AMPL on July 19, prior to the recent price rise.

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. AMPL price. Source: Cointelegraph Markets Pro

As seen on the chart above, the VORTECS™ Score for AMPL first turned green on July 17 and climbed to a high of 75 on July 19, around 15 hours before the price increased 57% over the next three days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.