I talked about the ChainLink cryptocurrency a little bit in my previous Bitcoin analysis titled “Bitcoin Dominance Crashes To 58%. Top 3 Altcoins To Watch!“. In that article, I talked about the crashing Bitcoin dominance and how that was a great indicator for predicting the Altcoin market.
However, in this analysis, I will be analyzing the Chainlink Altcoin a bit more. I will be pointing out my outlook on the Altcoin as well as the important levels I will be watching.
Understanding The Chainlink Hype
Chainlink over the months as seen its market capitalization grow, pushing the Altcoin as the 5th largest cryptocurrency in the world.
Chainlink is also one of the De-fi coins that are actually performing above expectations against both the U.S Dollars and Bitcoin in these current market conditions.
Is The Chainlink Bull Run Over?
That is a tricky question to ask with no perfect answers. However, I believe the better question to ask is “is this the best time to buy Chainlink?” And the answer to that is No.
Since breaking out of the ascending triangle, Chainlink as gone parabolic making over 270% in gains in just a few weeks.
This price surge as taken Chainlink too high, too fast and we might see a blow-off top coming in the days to come. But right now, Chainlink is showing no sign of weakness and we might continue to see the Chainlink price continue to rise in the coming days.
Buying the Chainlink Altcoin at these highs will only put you in a very disadvantaged spot in a situation the market eventually starts to correct, your downside potential loss could be very massive.
Is It Best To Sell Chainlink In Anticipation For A Blow-off Top?
While there is a high potential for us to see the Chainlink price retrace back down in the coming days, selling it at the current high is a very risky position to take especially during this period of Altcoin market volatility and crashing Bitcoin dominance.
At this point, it is best you stand aside and wait for a good setup to present itself on the crypto pair in the coming days.
Chainlink Against Bitcoin
The Chainlink against Bitcoin chart as also been very parabolic, even more parabolic than the Chainlink against the U.S Dollars pair.
However, it still paints the same picture, Chainlink is very bullish right but there is limited upside potential right now and it is best to wait.
For a list of the top best Altcoins to put on your watch list and trade during this coming bull run, check out my Top 25 Cryptocurrencies by Market Capitalization
To gain more information on how to partake in this coming Bitcoin Bull run and trade this cryptocurrency, you can read my How To Trade Bitcoin Guide. You can also check my top list of Best Bitcoin Exchanges To Trade With.