In summary:
- Friday, August 21st, saw LINK trade as low as $12.85 – Binance rate.
- This was a 36% drop from its all-time high value of $20.30.
- On the same day, Barstool Sports’ Dave Portnoy revealed he had sold his LINK bag.
- ChainLink (LINK) has since rebounded a day later to test $16.
The month of August has been a wild ride for ChainLink (LINK) as the digital asset has grown tremendously and also corrected in a similar fashion. What started off as a campaign to liquidate Zeus Capital on the 2nd of August, ended up being one of the greatest increment in value for a digital asset in 2020.
Barstool Sports’ Dave Portnoy Becomes a LINK Marine
LINK posted an all-time high value of $20.30 almost 3 days after Barstools Sports’ Dave Portnoy became a LINK marine. However, ChainLink soon corrected hard and went as low as $12.85 yesterday, August 21st.
On the same day, Mr. Portnoy took to Twitter to explain that he no longer owns any LINK or Bitcoin. Below is his tweet making the announcement.
I currently own zero bitcoins. I will wait and watch. I lost 25k. Just like with the stock market it took my brain time to figure it out. I know this. The Link Marines are weak and the orchid flowers do die in the crypto world. I may or may not be done. #bitcoin
— Dave Portnoy (@stoolpresidente) August 21, 2020
ChainLink (LINK) Rebounds Once Again
Less than 24 hours after posting the tweet, ChainLink has once again rebounded in the crypto markets. At the time of writing, LINK is trading at $16.10 and looks set to attempt recapturing the $17 support area. To get a glimpse of the potential short term future for ChainLink, the 6-hour chart provides several clues as to where LINK’s price is headed.
From the chart, the following can be observed.
- Trade volume is once again in the green, although showing some signs of exhaustion.
- The 6-hour MACD is about to cross in a bullish manner below the baseline.
- The 6-hour MFI is hinting of a possible push up for LINK in the hours to follow.
- The 50 Moving Average is acting as a short term resistance zone at around $16.
- Other resistance zones include $16.25, $16.48, $16.70 and $16.86.
Mr. Portnoy has since chimed in on LINK’s bounce via the following tweet.
Link marines bragging about 7% increases. 😂😂😂. https://t.co/23tc1zXq1v
— Dave Portnoy (@stoolpresidente) August 22, 2020
ChainLink is Still in a Downtrend
To note is that ChainLink (LINK) is experiencing a bounce within a correction as illustrated in an earlier analysis. As a matter of fact, LINK’s move fits perfectly with what is known as a ‘Dead Cat Bounce’.
As with all analyses of ChainLink, traders and investors are advised to use adequate stop losses and low leverage when trading LINK on the various derivatives platforms.