The huge growth of LINK seen throughout 2019 has expanded in 2020, with the overall market uptrend in January and February sending prices to ATH levels. Even in the face of a sharp decline in the past few weeks, LINK was able to undergo some parabolic dynamics.
This happens when on-chain data shows that cryptocurrencies are beginning to break the correlation with Bitcoin, which is an event that happened in history just before LINK entered a new growth trend.
This means that the demonstration that LINK saw over the past week may be just the beginning.
Analyst Teddy talked about the result of this technical breakout in a recent tweet, explaining that LINK had traded more than 45% in the time after confirming this bullish pattern.
The gift the keeps on giving, it clearly has no idea of what "correcting" may mean.
- Teddy (@TeddyCleps) April 12, 2020
An interesting event that investors should pay attention to is that LINK is currently showing early signs of breaking the correlation with Bitcoin, which is a historically bullish event.
According to data from the on-chain analysis platform IntoTheBlock, LINK's relationship with Bitcoin has been decreasing over the past two weeks.
If this correlation continues to be broken, Chainlink may see a more independent growth momentum with Bitcoin, potentially entering another parabolic cycle.
LINK blinks the attenuation signal
However, the recent rally may not last too long, as the cryptocurrency is currently showing some signs of weakness as it forms a striking pattern similar to ETH seen before falling off from a high. Most of 2020 is $ 290.
If this model goes as it did for ETH, Chainlink may soon see the capital decline leading to the establishment of a new yearly low.
At the time of writing, LINK is trading up nearly 7% with the current price of $ 3.43, marking a noticeable increase from the daily low of $ 3.11 that was set on the day. Yesterday when the bull tried to catalyze a drastically reduced motion.
While Bitcoin tends to provide some guidance for Chainlink, it's important to note that cryptocurrency trends are subject to independent motivation.
In the short term, LINK's price action may favor bears, with trader Calmly noting that the token will drop to its support level at $ 2.8.
“I like LINK because both the USD and BTC charts are near resistance. In general, I don't like to shorten the most bullish coins in space, but at the moment I think it can happen. ”
Source: Calmly / Twitter
It is important to note that a trader believes that LINK is flashing a technical model similar to ETH seen before falling from an annual high of nearly $ 300.
Trader "il Capo Of Crypto" talked about this possibility in a tweet while referencing a parallel comparison of two technical models of both types and seemed to have an incredible similarity.
“ETH Peak vs. Potential peak LINK. Wyckoff triangle distribution (volume analysis) ”.
Wyckoff triangular distribution (volume analysis) pic.twitter.com/C07keIoKpK
- il Capo Of Crypto (@CryptoCapo_) April 12, 2020
The coming days will confirm or disable this possibility of price reduction, but if it becomes a reality, LINK may soon see a large decline leading to annual lows.
You can see the price LINK here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZCoin News
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