Quick take:
- ChainLink (LINK) has taken a nosedive in the crypto-markets.
- $15 seems to be providing some level of support.
- Another area of a possible bounce by LINK could be at the 50-day Moving average.
- Dave Portnoy becoming a LINK marine might have been the first indication of a top for LINK.
The digital asset of ChainLink (LINK) seems to have begun what seems to be a correction from its latest all-time high value of $20.11 set only 2 days ago. At the time of writing, LINK is trading at $15.40 after experiencing what seems to be the beginning of a correction from its impressive August 2nd rally inspired by LINK Marines wanting to liquidate Zeus Capital.
LINK Loses the Number 5 Spot on CMC
Also to note, is that Bitcoin Cash (BCH) has reclaimed the number 5 spot on Coinmarketcap as a result of LINK dropping to the $15 price level.
50-Day Moving Average Provides the First Area of Defense for ChainLink (LINK)
A brief look at the daily LINK/USDT chart below confirms that ChainLink’s parabolic move is experiencing a significant pullback. Furthermore, the 50-day moving average (white) provides an area of interest for a possible bounce and/or support level for ChainLink.
Additionally, LINK has the following areas of support loosely based on previous all-time high values set between August 2nd and the 16th.
- $14.49
- $13.93
- $12.77
- $12.51
- $12.39
- $12.20
- $10.40
- $9.96 (current level of the 50-day moving average)
Also from the chart, the daily trade volume is in the red providing more evidence of selling pressure. The daily MACD and MFI are also hinting of a move down thus confirming the beginning of a possible correction for LINK.
Dave Portnoy Becoming a LINK Marine Might Have Been a Signal for the Top
Coincidentally, Barstool Sports’ Dave Portnoy officially became a LINK marine on the 13th of August when he met up with the Winklevoss Twins and bought $50,000 worth of ChainLink. Since then, Mr. Portonoy has tweeted about ChainLink on several occasions.
The most recent tweet by Dave Portnoy reassures LINK marines that whoever dumped ChainLink, shall be found and made to suffer the consequences.
Rest assured my fellow #linkmarines we will make whoever dumped $link pay. pic.twitter.com/zqXB7lQBRc
— Dave Portnoy (@stoolpresidente) August 18, 2020
As was the case with Bitcoin in 2017, once news of a digital asset mooning gets to mainstream media, it can be interpreted as a top for the asset in the markets. In this case, Mr. Portonoy becoming a LINK marine might have signaled the top for ChainLink.
As with all analyses of ChainLink, traders and investors are advised to use stop losses and low leverage when trading LINK on the various derivatives platforms.