What Comes Next After Chainlink’s 20% Drop In Less Than 30 Minutes?
Chainlink was in an unstoppable trend a few hours ago but now it crashed by 20% so what comes next after the drop? Let’s see what the analysts have to say in our LINK news today.
The asset was close to hitting an all-time high price of $20 which is a 1000% increase from the lows in March. Very few expected that the price action will stop but it did a day ago when in only 30 minutes the price of Chainlink dropped by 20% from the $18.80 range to the $14.50 range. Some remained optimistic but quite a lot of them are bearish as they noted how this flash crash can be harmful to the asset and wonder what comes next after this crash?
LINK trades at $17 going below Bitcoin cash to become the sixth-biggest cryptocurrency again. When LINK crashed from $18.80 to $14.50 region in only half an hour, analysts were shocked as the asset was rallying before and then fell so fast. One trader shared charts showing how link is in the wake of plunging lower arguing that the asset along with bitcoin could love lower as a “bad omen:”
“LINKUSD and BTCUSD moved together on this wipe out. Behavior has markedly changed from prior negative correl, where capital was sloshing around – when BTC would leg down LINK would rip up and vice versa. Can’t put my finger on why but think this is a bad omen.”
The skepticism was echoed by Blockfyre as the company noted that LINK’s price is getting weaker and there could be a potential high forming:
“Each subsequent rally getting weaker and weaker in price discovery during a parabola where no supports have been built will likely have to find buyers lower. This run looks like it’s at an end temporarily with how that daily candle formed.”
— Dave Portnoy (@stoolpresidente) August 18, 2020
What could unexpectedly boost the price of Chainlink is the involvement of Dave Portnoy. The Barstool Sports founder became a day trader and purchased LINK last week after he got help from the Winklevoss Twins. Portnoy purchased $50,000 worth of LINK after he was about to buy $120,000 worth. While his stake is small compared to the one in bitcoin, he becomes a loud proponent of the altcoin. There was also a video of him addressing an “army of LINK Marines” which was a nickname given to the crypto proponents.
He has an audience in millions who have followed his investments for the past few months. The Barstool Sports founder had a lot of influence that caused the 30-day volume for the ETF to surge.