Chainlink has been showing signs of weakness throughout the past few days, but this trend may be shifting as the cryptocurrency rebounds today alongside Ethereum and other major altcoins.
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin market.
This shift could work in Chainlink’s favor, although the cryptocurrency has a way to go before it can erase the losses it has seen over the past few days.
Where it trends next may depend largely on the sustainability of this ongoing ETH rally, as any sharp retrace could strike a serious blow to altcoins.
One analytics firm pointed out that Chainlink is still seeing large spikes in development activity, which is a positive sign that typically bodes well for an asset’s price action.
If this trend persists, the confluence of heightened development activity and strength amongst altcoins could send it rocketing higher.
At the time of writing, Chainlink is trading up just under 2% at its current price of $10.60. This marks a notable rebound from its recent lows of $9.80 set just a few hours ago.
The rebound from this sub-$10.00 dip came about due to the strength seen by Ethereum.
ETH surged from $380 to over $400 this morning, with this rally coming about due to an announcement regarding Ethereum 2.0 launching in December.
If ETH shows signs of continued strength, money could begin rotating into altcoins and help sustain Chainlink’s tempered strength.
Analytics firm Santiment explained in a recent tweet that Chainlink’s development activity has been rapidly rising.
They interpret this as a positive sign indicating that cryptocurrency is fundamentally strong – which could translate into technical strength.
“The development activity of LINK has been rising, according to the github data we track. Generally, when projects have an increase in their team’s true dev. rate as Chainlink has, it’s a positive sign for the asset’s sustainability & longevity.”
Image Courtesy of Santiment.
” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin market.
3 Major Reasons Why Chainlink (LINK) Could Fall by 25% – Crypto Money Daily
As a startup, Chainlink solves a significant obstacle that concerns transferring data between blockchains and the real world.
The protocol, whose origins date back to September 2014 – a period when half of the world have not even heard about blockchains and Bitcoin, offered a solution that enables independent data sources to feed information into public ledgers through a decentralized oracle network.
Flash forward to 2020, Chainlink is now part of 315 blockchain projects, including decentralized finance protocols, data providers, blockchain nodes, and whatnot.
#Chainlink ecosystem growth never slows with 29 new October integrations 🔥
Total $LINK integrations 315 – including:
23 #data providers
44 nodes and more!
View all here: https://t.co/ZUaUvFgUSd
Is your #smartcontract #PoweredByChainlink
It should! pic.twitter.com/IdCX65zNYa
— TheLinkMarine 🦆 (@TheLinkMarine1) November 1, 2020
Chainlink’s success is also visible in its market capitalization, which has surged to $4.275 billion from $101 million in just two years. Naturally, the upswing has also pushed the price of LINK, Chainlink’s in-house token, higher; it was recently up by more than 17,000 percent since launch.
But despite Chainlink’s growth as an oracle protocol, the performance of its token remains exposed to the supply-and-demand dynamics. The LINK/USD exchange rate topped at $20.71 in August 2020. The pair later experienced a significant sell-off. The move brought its price down by as much as 64 percent – as of September 23.
LINK’s plunge was a product of a bearish technical setup. As usual, the token bounced back, logging a 79.18 percent recovery. Nevertheless, it remained under bearish pressure as a combination of technical and fundamental signals pointed to an extended downside bias among traders.
Here are three reasons why LINK has more room to fall in the coming sessions.
The first bearish setup for LINK arises from its address count.
Data fetched by IntoTheBlock shows that the number of new LINK addresses has barely moved in the last 30 days. The Chainlink network is currently adding an average of 2,000 addresses every day. At its best in August, the project was integrating about 10,000 a day.
Chainlink's new addresses are declining. Source: IntoTheBlock
That shows an 80 percent decline. Meanwhile, IntoTheBlock further reported that over 800 LINK whales with balances between 1,000 to 10,000 LINK left the Chainlink network ahead of the October close. That also shows that serious traders are selling their LINK holdings.
Chainlink’s solid long-term fundamentals have also fallen prey to a growing Bitcoin dominance in the overall cryptocurrency market amid the US presidential election.
More and more traders have reallocated their capital into Bitcoin, believing the cryptocurrency would be at the forefront of the winners that will benefit from the second coronavirus stimulus package. The bill reached an impasse in the US Congress after the Democrats and the Republicans entered negotiations over its size.
Bitcoin bulls believe that a clear win for the Democratic candidate Joe Biden would have him prove the majority in the Senate. The Democrats want a big relief fund for Americans. So their elevation into the Senate House would mean more dollar liquidity for the US economy.
Bitcoin touched its three-year high this week on "blue sweep" hopes. Source: BTCUSD on TradingView.com
As a result, the greenback’s purchasing power will dip and, in turn, would send the Bitcoin prices higher.
Therefore, traders believe it is wiser to keep their funds locked in the Bitcoin market. That has hurt LINK in the short-term.
LINK bearish setup. Source: LINKUSD on TradingView.com
The bearish continuation pattern typically surfaces during a downtrend. It looks like an upward channel after a strong move downside but eventually breaks below the lower trendline to continue heading lower. The ideal bearish target here is as lower as the height of the pole (downward arrow in the chart above).
If the fundamentals above persist, then the LINK/USD pair could test $7.15 for a rebound.
Altcoins Attain Pivotal Crossroads, Destiny Of Crypto Hangs In The Stability
Altcoins, after three years of a bear market, are lagging far behind Bitcoin when it comes to general restoration. Ethereum, XRP, and several other others are nonetheless greater than 50% away or extra from their all-time highs, whereas Bitcoin inches nearer to revisiting its.
Bitcoin is undeniably bullish, however altcoins are at the moment displaying indecision in additional methods than one. The altcoin market is at a significant crossroads, and the result may change the way forward for the crypto market transferring ahead. Right here’s how.
Bitcoin is the first-ever cryptocurrency from which all different altcoins got here after. Most altcoins have been designed to beat Bitcoin at its personal recreation, and regardless of quicker speeds, smaller charges, or higher scalability, the highest cryptocurrency maintains the lion’s share of crypto market dominance.
Ethereum, XRP, and extra have all discovered their area of interest alongside Bitcoin as an alternative, aiming for a special investor viewers and use case completely.
Associated Studying | Bitcoin Dominance Is Days Away From Triggering A 30% Rally Towards Alts
The remainder of the altcoin area, nonetheless, is crammed with damaged guarantees, scams, and initiatives that may by no means revisit their earlier highs. And whereas there’s no telling if even Ethereum and XRP may share that very same destiny in the long run, the altcoin market cap as an entire is at a vital junction and when the indecision breaks, a large transfer ought to comply with.
On month-to-month timeframes, the indecision is made clear by means of a string of doji candles at resistance. Both that is consolidation earlier than an enormous transfer upward, of a catastrophic selloff in altcoins may quickly comply with.
The altcoin market cap month-to-month Ichimoku and doji point out indecision | Supply: CRYPTOCAP-TOTAL2 on TradingView.com
The indecision can also be made much more apparent because of the Tenkan-sen and Kijun-sen strains converging on the Ichimoku – a uncommon occasion for the technical evaluation indicator. A crossover of the 2 strains, additionally known as the Baseline and Conversion line, kick-started the bear development.
If the Tenkan-sen crosses above Kijun-sen, it’s a sign a brand new bull market is starting for altcoins. But when the Tenkan-sen heads again down below the Kijun-sen, crypto winter for altcoins is about to get quite a bit colder, although Bitcoin’s bull run might be right here.
There is a lengthy distance to fall for altcoins if indecision breaks to the draw back | Supply: CRYPTOCAP-TOTAL2 on TradingView.com
Curiously, within the chart above, the cloud over 2021 is crimson, suggesting bearish future value motion forward. The bear development may prolong all the best way into 2023 in line with the cloud, nonetheless, the cloud additionally acts as a magnet for value motion, posing as assist or resistance each.
This might point out a number of extra years of consolidation at former highs earlier than new highs are reached for altcoins. However that’s a bullish take.
Associated Studying | Crypto Analyst: Altcoins To “Tank” Whereas Bitcoin Runs For All-Time Excessive
The bearish take, as an alternative sends the overall altcoin market cap retracing a lot of the parabolic advance that took the ballooning crypto market to such measurement again in 2017. And because the chart reveals above, there’s an extended method to fall for alts.
A full-blown Bitcoin bull run because of severe traders, mixed with the unforgettable lack of promise from the final bubble, may go away altcoins behind this market cycle, even regardless of a bullish Bitcoin. It’s a state of affairs that every one crypto traders have to be cautious of, as, with a pandemic and potential financial crash forward, this time is clearly totally different in crypto.
Featured picture from Deposit Images, Charts from TradingView.com
Author: By admin
Ethereum fees declining as DeFi markets cool
The DeFi bubble seems to be slowing down in the last months of 202, with fees and confirmation times retreating back to less formidable levels.
“ETH fees are way down suggesting the DeFi madness has abated for now,” Josh Olszewicz, also known as CarpeNoctom on Twitter, told Cointelegraph.
“DeFi cooling off, BTC HR [hash rate] way down (-16% difficult adjustment),” he also said, referring to the situation on Bitcoin’s (BTC) network. Bitcoin’s network action, however, is not related to the drop in Ethereum fees, based on Olszewicz’s opinion. “Just happens to correlate,” he explained.
Bitcoin’s hash rate suffered a recent decline, signaling a drop in mining power for the network. Over the last several days, the Bitcoin blockchain has seen high levels of congestion, leading to longer confirmation times, with many transactions still left unconfirmed. The network completed a significant difficulty adjustment on Nov. 3, but the dropping hash rate prior to the adjustment was the likely catalyst behind the high fees and clogged network, Olszewicz posited.
“Not sure why BTC fees are so high,” Olszewicz said. “Fees should have ‘burned off’ from the high congestion by now, so not entirely sure, but total fees/day are rising on BTC,” he explained. “Could be a lagging effect there.”
Bitcoin continues to take the spotlight as it challenges a convincing break past its 2019 high, while mainstream corporate BTC adoption discussions continue.
Bitcoin and Altcoins Face Increased Selling Pressure
In the past three sessions, bitcoin price saw an increase in selling pressure below USD 13,650. BTC broke the USD 13,500 support and even extended its decline below the USD 13,350 support. The price is currently (05:00 UTC) holding the USD 13,200 support, but it might struggle to climb back above USD 13,650 in the short-term.
Moreover, there was a sharp decline in most major altcoins, including ethereum, XRP, litecoin, EOS, XLM, LINK, BNB, TRX, bitcoin cash, and ADA. ETH/USD is down over 5% and it retested the USD 372 support zone. XRP/USD declined below USD 0.232 before the bulls appeared near USD 0.228.
Total market capitalization
The bears were able to defend gains in bitcoin price above the USD 13,750 and USD 13,800 levels. As a result, there was a bearish reaction and BTC declined sharply below USD 13,500. The price even broke the USD 13,350 support, but it remained well bid above USD 13,200.
It is currently consolidating losses, with an immediate resistance at USD 13,500. The key hurdle is now forming near the USD 13,650 level, above which the price may even clear USD 13,800.
Ethereum price gained bearish momentum and declined sharply below USD 385 and USD 380. ETH retested the USD 372 support level and it is currently attempting a recovery. On the upside, the price might face sellers near the USD 380 and USD 382 levels.
On the downside, the USD 372 level is an important support. If there is a clear break below USD 372, the price might accelerate its decline towards the USD 355 support level in the coming sessions.
Bitcoin cash price dived 10% and it broke the main USD 250 support level. BCH even traded below the USD 240 support level. It seems like the bears are back in action and they could even aim for a test of the USD 230 support level. If there is a fresh increase, the previous support near USD 250 might act as a resistance.
Chainlink (LINK) settled below the USD 11.00 and USD 10.80 support levels. As a result, there were more losses below the USD 10.50 support. The price even broke the USD 10.20 support and retested the USD 10.00 zone. It is now consolidating losses, with many hurdles near USD 10.50 and USD 10.60.
XRP price was rejected near the USD 0.245 level. There was a sharp bearish reaction below the USD 0.240 and USD 0.235 support levels. The price even spiked below USD 0.230 before the bulls appeared near USD 0.228. A short-term correction is underway, but the price might face hurdles near USD 0.232 and USD 0.235.
In the past few hours, many altcoins declined over 10%, including RSR, SUSHI, OCEAN, AAVE, COMP, SNX, ALGO, HT, EWT, BAND, NXM, YFI, UNI, STX, LRC, REN, and LINK.
Overall, bitcoin price is showing a few bearish signs below USD 13,500 and USD 13,650. If BTC fails to stay above the USD 13,200 support, there is even a risk of a break below the USD 13,000 support.