ChainLink’s current value around $10 is a 50% drop from its August all-time high around $20At one point, the retracement from the all-time high was 64%LINK could lose the $10 psychological price level and keep falling furtherThe team at Zeus Capital has predicted an incoming ChainLink market dump
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.
LINK’s Rally in Q3 2020, Was a Bubble
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.
Extrapolation – the act of investors using past data to assume an asset will rise at a certain rate foreverHerding – investors following other investors as was seen in the dot com boomCelebrities shilling the project as was the case with Dave PortnoyMania phase where the media popularizes the market actionDenial – investors refuse to sell because holding earlier was successfulNo exit strategy – continuing to hope for exponential growthMarketing – investors eager to pump their bags shill the project even harderCoin supply concentration – 70% of LINK’s supply is held by 9 whales
Zeus Capital Continues to Call for a Lower Value of LINK
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.
The argument “Chainlink is crashing but the market is falling too” in one simple table. $LINK, see you at $4. Then downwards. pic.twitter.com/4MfvJ7vtEa
— Zeus Capital (@ZeusCapitalLLP) September 23, 2020