While a majority of altcoins have fallen off the face of the Earth, crumbling by upwards of 80% over recent years due to the collapse of the ICO bubble, there have been a few projects that have managed to garner some semblance of staying power. One such project is Chainlink (LINK), a blockchain data solution that helps bring online data onto chains, helping a number of decentralized applications, especially in the field of decentralized finance (DeFi).
LINK, which used to be a lesser-known cryptocurrency, is now the 17th largest digital asset by market capitalization, has roared over the past few months, reaching fresh highs.
As of the time of writing this, a Chainlink token is changing hands for around $2, down a few percentage points from the recent local high but up hundreds of percent from prices seen just months ago.
He noted that the popular altcoin’s price action is looking much like the historical Ethereum rally, top, then crash of 2016-2018, looking to the existence of a blow-off top, a consolidation that turns into a bearish continuation, a bounce off historical horizontal support, a second top, then a secondary collapse that absolutely massacres the cryptocurrency.
Should the fractal play out in full, it suggests that Chainlink is ready to tumble further and further, potentially back under $1.
It isn’t only that. An analyst recently noted that Chainlink’s recent price action has resembled a Wyckoff chart schematic, which implies that a large sell-off is likely to take place over the coming weeks and months.
More specifically, if the schematic, used accurately across many asset types for years and years, is accurate, it would suggest that LINK is about to enter a markdown phase now that buying has been exhausted in the distribution range.
I'm certainly no Wyckoff expert not my strength so take this meme with a grain of salt. If you know who the best wyckoff trader is tag them please. $LINK But just imagine for a second. Just… Imagine…. One of the greatest transfers of wealth taking place. No timeline pic.twitter.com/Vmq0zltLqk