After reaching a new historic high of $ 8.92, ChainLink (LINK) is experiencing an intense setback.
Unlike Bitcoin (BTC) which continues in its interstellar mission above $ 10,000, ChainLink’s fortunes are heading in the opposite direction. LINK is in the midst of a normal but heavy correction to its highest value ever, from $ 8.92 to its value of $ 7.13 at the time of writing. In addition, LINK appeared to fall further with Bitcoin’s appreciation.
LINK is not as correlated to Bitcoin as other Altcoins
The lack of correlation between LINK and Bitcoin was the driving force behind ChainLink, which recently reached its historic record. At that time, Bitcoin had been flirting with levels of $ 9,000 for almost two months.
This fact was highlighted by the Cane Island Alternative Advisors team through the following statement:
“Unlike most other cryptocurrencies and tokens, LINK was not influenced by Bitcoin’s price movements. The merit of this discovery lies not only in an investment diversification benefit, but in almost none of the popular arguments against Bitcoin that would have much weight or applicability in LINK. ”
LINK’s hope is at its former $ 5 historic high
To get an idea of when ChainLink can become optimistic again, we visited the daily LINK / USDT chart.
From the graph, the following can be seen.
- LINK’s price is still in excess, as its value is well above the 50, 100 and 200 day moving averages.
- Trading volume and daily MACD are in the red, further confirming the retraction.
- The daily MFI is also pointing to further losses for LINK.
- At the macro level, the daily moving averages are aligned with strong support zones of $ 5.80, $ 5 and $ 4.20.
- Support for the 100-day moving average also coincides with its all-time historic high, around $ 5.
- LINK found similar support at a historic high of $ 1.50 during the March crash.
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ChainLink (LINK) is in the middle of a heavy correction. The digital asset proved not to be affected as much by Bitcoin’s price movement. This lack of correlation with Bitcoin could cause LINK to fall to its highest value ever before, around $ 5.
Timothy Peterson of Cane Island Alternative Advisors, an investment manager who pointed out LINK’s potential to continuously grow based on Metcalfe’s value, also sees a scenario in which LINK drops to $ 5.