bearSince the lows of $2 seen in March, the asset quadrupled and traded as high as $9.00 earlier this week, as we reported in the Chainlink news.
The strong performance of the asset came on the back of the influx of fundamental developments, for example, China’s blockchain service network that uses Chainlink technology:
“This integration of Chainlink provides BSN users additional security, reliability, and interconnectivity to help fuel even greater growth and adoption of blockchain applications in China and around the world.”
The blockchain Service Network is a state-sponsored blockchain initiative that involves government sectors, banks, and technology companies in China. Despite its strong performance, not everyone believes that Chainlink can continue its strong rally in the upcoming months. According to a chart shared by the technical analyst Telegram Channel, LINK printed a “sell quasi 9” according to Tom Demark Sequential. The TD indicator is a textbook bear signal that prints 9 and 13 candles at the inflection points in the asset’s trend.
The latest signal shows that the popular altcoin could see a retracement after rallying by hundreds of percent. One trader even noted on July 16th that the bearish divergences formed while the TD Sequential indicator printed a few normal 9 candles for the asset. Josh Olszewicz added that Link’s RSI is at an all-time high while the price neared two resistances meaning a pullback is possible. A fund named Zeus Capital also released a report on Chainlink on Twitter and to members of the industry via email.
The twitter account got restriction by Twitter while the Zeus Capital website was created a few months ago. There are no public personal profiles that are attached to the operators of the company. Despite that, the report did outline a case for LINK’s drop to $0.07 meaning a 99% drop from the current level:
“The report diligently proves the point that the sole purpose of LINK is to enrich Chainlink’s development team instead of being a vital unit of exchange in a next generation infrastracture for data transfer. Behind the shiny facade of the miltibillion dollar project we have exposed signs of absolute lack of interest in building the technology, team that is incapable on delivering what is currently reflected in token’s market capitalziation and a series of market manipulations and plain lies targeting naive investors.”
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