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

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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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JPMorgan Provides Private Bitcoin Fund for Wealthy Clients Despite CEO’s Disinterest in Crypto

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Banking giant JPMorgan has partnered with the NY Digital Investment Group to provide access to a Bitcoin Fund, despite Dimon disposition towards crypto.

JPMorgan Chase & Co (NYSE: JPM) now offers its private banking clients an opportunity to invest in an in-house Bitcoin Fund. The multinational investment bank is making this available in partnership with New York Digital Investment Group (NYDIG), a leading digital investment group. A subsidiary of Stone Ridge alternative asset managers, the NYDIG offers a host of activities which includes asset management and execution within a secure framework. 

The leading bank only made this announcement yesterday in a conference call to advisers. So far, JPMorgan has not received any investments from its target clients into the fund.

According to JPMorgan, the Bitcoin Fund will be presented in “the safest and cheapest bitcoin investment vehicles available on the private markets”. In addition, the private fund will seamlessly ease into a Bitcoin exchange-traded fund down the line. The bank already has plans in motion for such a product but does not currently have an ETF bid before the Securities and Exchange Commission (SEC). However, NYDIG has filed one, which is now under review.

JPMorgan CEO Is Anti-Crypto

According to JPMorgan, its recent developments do not change the skepticism the bank harbors towards cryptocurrencies. In the bank’s opinion, it is solely a business move designed to cater to the growing interests of its clients to invest in crypto. When media reports concerning the news first came out in May, Company CEO Jamie Dimon made his sentiments known shortly after that. He said: “I don’t care about bitcoin. I have no interest in it. On the other hand, clients are interested, and I don’t tell clients what to do.” 

In the past, Dimon has even shared stronger sentiments concerning digital currencies. Back in May, Dimon cautioned investors about Bitcoin and the entire digital currency industry. Speaking in congressional testimony to the United States House Financial Services Committee, Dimon however said that the bank will offer crypto services to clients and customers, regardless of his personal opinion. He said:

“My own personal advice to people is: stay away from it. That does not mean the clients doen’t want it. This goes back to how you have to run a business. I don’t smoke marijuana but if you make it nationally legal, I’m not going to stop our people from banking it.”

JPMorgan Bitcoin Fund Marks Growing Trend in the Financial Industry

Despite what its CEO or thinks about digital currencies, JPMorgan continues to enter the world of cryptocurrencies. Last month, the company began to allow its financial advisors to assist its wealth management clients with crypto investments. The JPMorgan Private Bank provides services that include access to Bitcoin funds, such as GBTC, through a JPMorgan brokerage account. Also, JPMorgan added crypto exchanges Coinbase and Gemini Trust Co. as banking clients last year.

JPMorgan’s recent move reflects an increasing number of traditional financial institutions making moves into the world of digital currencies. There has been a surge in client demand in recent times and an increase in the value of the tokens. In addition, other financial institutions like Morgan Stanley and DBS Group Holdings Limited are also getting into crypto.

 

 

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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.



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600% More Wallets Added Last Month

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We’re always on the lookout for companies innovating in the blockchain space. Today we will explore IoT and Blockchain technology and IOTEX’s ioTube in particular. IOTEX recently announced a major upgrade to their ioTube service (v4). ioTube is now capable of acting as a bridge to support two-way token swaps between IOTEX, Polygon, Ethereum and […]

We’re always on the lookout for companies innovating in the blockchain space. Today we will explore IoT and Blockchain technology and IOTEX’s ioTube in particular. IOTEX recently announced a major upgrade to their ioTube service (v4). ioTube is now capable of acting as a bridge to support two-way token swaps between IOTEX, Polygon, Ethereum and BSC (Binance Smart Chain).

We reached out to Polygon for comment.

“Collaboration is the key to excellence in today’s market. Unsurprisingly, this coincides with the Decentralisation thought process running in the industry. The IoTeX cross-chain will bring real-world benefits to the ever-growing digital world, and make NFTs more relevant to this novel philosophy,” said Sandeep Nailwal, Polygon COO & Co-founder.

As a result of this update, IOTEX had their signature breakthrough moment, as the volume of active wallets in July jumped 600% in just one month. With over 3,450,000,000 billion IOTX staked, the chain is showing breakout behaviors. IOTEX has highly engaged users and an ecosystem that shows that it is on its way to being the singular leader in blockchain integration, usability, and accessibility.

What Are Cross-chain Swaps and Why Are They Important?

One word – Interoperability.  In cross-chain swaps, the item of value, a cryptocurrency or data piece, can move freely from one platform to another, allowing people from various blockchains to tap into multi-chain value.

Do more. Faster. Frictionless.

As more diverse crypto projects and platforms are developed, they increase in value and ease of use as they integrate cross-chain functionality. Polygon is one of the premier 2nd layer chains on Ethereum, and integrating with IOTEX is a game-changer for both parties.

You may have heard the expression, “The whole is greater than the sum of the parts.” This is the value that results from combining multiple platforms – that is, the value we get from the network effect. The more people and companies are using a network, the greater benefit for every person on it. As an example, Paypal (payment providers) and Shopify (online commerce) together create additional value for every online shopper.

Can Cross-chain Swaps Be Used with NFTs?

As part of their recent announcement, IoTeX reports people can now trade both IoTeX tokens and NFTs, including “Real-World NFTs from Pebble-GO” on the OpenSea marketplace, built on Polygon. Read IoTeX’s recent post on their integration with the NFT marketplace.

As mentioned earlier, this interoperability is great for people who don’t care – nor should they – what platform they are on. They just want to see the value. Fortunately, we no longer have to separate New York City pizza dollars from Hoboken pizza dollars, so to speak. Cross-chain solutions allow us to reach across chains, or states for this metaphor, seamlessly. That’s an exciting possibility for the decentralized world.

Is IOTEX EVM Compatible?

Yes, it is. Looking more broadly at the IoTeX / Polygon announcement, we see that amazingly, IoTeX is an EVM/Web3.js-compatible blockchain. EVM is the Ethereum Virtual Machine, a protocol that allows Decentralized Apps (DApps) to function across all other EVM compatible platforms. (There’s that interoperability again!)

IoTeX will tie in with Polygon and use its interoperability protocol to exchange IoT data and assets with Ethereum and other blockchain networks.

We expect we’ll be seeing many more partnerships between IOTEX and major players in the blockchain ecosystem in cryptocurrency, data, NFTs and device data (IoT generated data).

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Author: Devan Harmon

Devan is a crypto trader and Bitcoin enthusiast. He does his best to keep up to date with all the latest trends and innovations in the blockchain industry and likes sharing his expertise.



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Coin Stock Jumped 6.16% Yesterday, 2% Up Now, Coinbase Acquires Data Aggregator Zabo

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Founded back in 2018, Zabo provides developers with an application programming interface (API) to connect to any cryptocurrency exchange, digital wallet, protocol, or account seamlessly.

Coinbase Global Inc (NASDAQ: COIN) stock closed Wednesday trading at $224.36, 6.16% higher than the opening price. However, COIN stock had retracted approximately 1.66% during today’s premarket trading session before gaining 2% when the market opened today. Although several factors contributed to yesterday’s pop, among them is the announcement of the Zabo acquisition. Notably, Coinbase announced the strategic acquisition of Zabo, however, it did not disclose the transaction details. As a result of the acquisition, Zabo’ score team comprising up to 10 members will be joining Coinbase.

“We’ve been lucky to know multiple folks on the Coinbase team for years,” said Christopher Brown, the other co-founder. “We saw that there were amazing opportunities to work together, which led to us officially joining forces.”

Zabo and Coinbase Bigger Picture

Founded back in 2018, Zabo provides developers with an application programming interface (API) to connect to any cryptocurrency exchange, digital wallet, protocol or account seamlessly.

Both companies have a similar objective of bringing the cryptocurrency industry to the mainstream market. However, Coinbase has been working towards widening its revenue collection avenues as competition grows in the crypto industry.

Moreover, its stock market has significantly depreciated since going public during the first half of the year. However, most of its investors remain optimistic in the future growth prospects, including Ark Invest led by Cathy Wood.

The acquisition is strategic as Coinbase seeks to venture into more crypto-related businesses. Furthermore, Zabo has been perfecting its services for the past three years. “Over the last three years, with the help of our amazing team, customers, investors and partners, we succeeded in establishing the Zabo API as the world’s most powerful tool for connecting to any crypto exchange, wallet, protocol or account,” noted Christopher and Alex, Co-Founders at Zabo.

Notably, Zabo raised $2.5 million last year to grow exponentially in the cryptocurrency industry. A year later, the investment has paid off after the acquisition by Coinbase.

Moonshots Capital co-founder and general partner Craig Cummings referred to the Coinbase deal as a huge milestone. On the other hand, he referred to the deal as a successful exit for the Zabo platform.

Coinbase has a reported market valuation of approximately $48.4 billion with 141.79 million outstanding shares. The valuation has given the company a chance to make more acquisitions in the past few months. Notably, the crypto exchange has in the recent past acquired Tagomi, a crypto exchange firm, and Skew among others.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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