Quick take:
As far as financial markets go, ChainLink’s third-quarter rally to its new all-time high of $20.18 is looking more and more like a bubble every day. A quick analysis of ChainLink’s price movements since its peak reveals that LINK underwent a massive 64% pullback from its all-time high to its local bottom around $7.22. Furthermore, LINK’s current value
at $10.20 is 49.4% of its aforementioned ATH.Back in mid-August, crypto analyst @CryptoWhale warned crypto traders and investors of the potential of ChainLink (LINK) experiencing a massive pullback as is the case with all market bubbles. In an elaborate Twitter thread, @CryptoWhale provided 8 characteristics of a financial bubble.
Going back in time to mid-August, it can be observed that LINK marines called on each other to liquidate Zeus Capital. The latter team had branded ChainLink as vaporware and the value of LINK would drop to zero. The same Zeus Capital has taken to Twitter to point out that LINK is falling and could end up being valued at $4 or lower. Below are two tweets by Zeus Capital predicting another ChainLink (LINK) market dump.
A brief glance at the LINK/USDT chart reveals that ChainLink has been relying on the $10 price area for support. From around the 25th of September, ChainLink’s price has been oscillating between $9.40 and $11.20.
If ChainLink fails to maintain this area as support, LINK could very well be on a path to fulfilling Zeus Capital’s predictions of $4 or lower.
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.