Chainlink Could See Steep Correction After Surge
Chainlink is expected to drop after surging dozens of percent in the past few days, analysts say. The cryptocurrency is already down 4% on the day per data from Coin Market Cap.
The head of technical analysis at Blockfyre, a crypto research firm, shared the chart below on August 14th. It shows that Chainlink is poised to correct as per Elliot Wave. Elliot Wave is a type of technical analysis that suggests markets can move in predictable waves as dictated by investor psychology:
Chart of LINK's price action against the dollar over the past few months/years from trader Pentoshi (@pentosh1 on Twitter). Chart from TradingView.com
The expectations of a price correction have been echoed by other analysts.
Tyler D. Coates, a cryptocurrency technical analyst and author, noted that Chainlink’s parabolic advance is likely in its last phase:
Chart of Chainlink's macro price action with a Hyperwave anaylsis by trader and technical analysis author Tyler D. Coates (@Sawcruhteez on Twitter). Chart from TradingView.com
On-chain data agrees with this bearish sentiment. As reported by Bitcoinist previously, blockchain analytics firm Santiment found that there has been a spike of LINK deposited into exchanges, suggesting investors want to cash out before an unexpected drop.
What may boost LINK, though, is the growing number of short positions building. According to FTX, the funding rate (hourly) of its Chainlink futures market has reached -0.006%, which suggests there are more shorters than long position holders again.
Some traders see negative funding rates as a sign of an asset poised to move higher. Whether LINK follows this trend, though, remains to be seen.
Photo by ?? Claudio Schwarz | @purzlbaum on Unsplash Chainlink Price tags: linkusd, linkbtc Charts from TradingView.com Analysts Are Expecting Chainlink (LINK) to Pull Back After Parabolic Advance
Originally from Bitcoinist.com https://ift.tt/341vjDh
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.