This Chart Suggests Chainlink’s Parabolic Rise Isn’t Finished
Chainlink volatility is increasing after the asset fell from its all-time high of $20. A 60% collapse sent the cryptocurrency plummeting, only to see a record-breaking bounce that beat any intraday throughout the rest of the altcoin’s amazing 2020 so far.
And although there was a 60% crash, LINKBTC weekly price charts suggest that the asset’s parabolic advance is still intact, potentially pointing to more new 2020 highs ahead. But if the cryptocurrency can’t maintain its upside momentum, the fall down could be substantial.
Chainlink’s Parabola Hasn’t Broken On Bitcoin Trading Pair, New ATHs Inbound?
The previous touch sent Chainlink vertical and to a peak of just under 170,000 sats – a 300% increase. This latest bounce could send the cryptocurrency continuing much higher, but a breakdown, however, could be disastrous.
And while Bitcoin is a strong example of what happens when parabolic assets break down, Ethereum trading against BTC may be a more one-to-one comparison with Chainlink.
ETHBTC Broken Parabolic Curve Drawdown Example | Source: TradingView
ETHBTC fell a full 90% from ATH against Bitcoin when its curve was broken, dropping back to a base the asset built during the previous market cycle. A 90% fall in Chainlink, on the LINKBTC trading pair, would take the crypto asset back to its base, back at 15,000 sats.
Will Chainlink lose its parabolic support?
Featured image from Deposit Photos, Charts from TradingView