Why Chainlink could defy the crypto crash
Chainlink’s price movement has been characterized by a parabolic upward support line in effect since December 2017. Subsequently, the price successfully shot up above this resistance zone since Monday, March 9th. Chainlink is a project that has managed to fill a niche within a niche. It remains to be seen whether this will be enough, in the long run, to maintain or even increase the price.
Chainlink (LINK) can currently resist the falling market. The Bitcoin price has dropped another $1,000 since Monday, March 9th, and has now dropped below the $8,000 mark. This movement has maneuvered the entire market into a bloodbath.
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The current situation on the crypto market
Above all, the altcoins had to accept enormous losses but one of the top performers of the last weeks and months was able to hold its ground even in this difficult phase. Chainlink and the LINK token was able to assert itself against the strong selling pressure of the last few days.
Let us take a closer look at the current situation on the crypto market and see whether an investment in Chainlink (LINK) is currently still worthwhile.
Is Chainlink hype justified or not?
The hype around Chainlink should be felt by everyone by now. It is slightly reminiscent of 2017 when every project was subject to similar hysteria and prices shot up irrationally. But it’s different with Chainlink because it certainly has been able to position itself in an important area in recent months – decentralized Oracles. That is, above all, an extremely important use case for the emerging area of Decentralised Finance (Defi). So there do seem to be sound arguments why Chainlink is currently on everyone’s lips and has such a high rating.
That is, of course, only one side of the coin. The use case of the LINK token is clear, but does the current Chainlink price have any relation to the actual use of the token within the system? Probably not at all. Like most crypto projects, the price is based on a lot of speculation, which results in a possible positive future early on. The price increase has nothing to do with the actual use case of the token. This must be clear to everyone at this point in order to better assess own risk. if one already has or is planning an investment in Chainlink.
LINK still depends on the Bitcoin course
All hype will fade at some point. At the latest, if the Bitcoin price should fall further, even the last altcoin will suffer from the sale. In the end, the entire market holds and orients itself to the movement of the Bitcoin price. No wonder if the Bitcoin dominance is over 63%. Currently, many people are simply fleeing from BTC or altcoins, of which they expect to achieve the highest returns in the short term. This is without question Chainlink at the moment, because the hype level is certainly at the very top.
The question at this point is how the Bitcoin price will continue to behave and whether the hype is big enough to stand up to the falling market. Chainlink is a project that has managed to fill a niche within a niche. It remains to be seen whether this will be enough, in the long run, to maintain or even increase the price. It is important not to take any rash steps at this point and not to let FOMO (Fear Of Missing Out) guide you.
How to invest in Chainlink for the long-term?
If someone is interested in building up a long-term position in Chainlink (LINK), it is good to stick to the cost-aging strategy and invest in small steps to achieve a good average price. With this strategy, there is no need to worry about the right time to buy and can sit back and relax.
The Bitcoin Savings Plan can also be applied to any other altcoin/token. This procedure is also suitable for shares and other assets that you want to hold in the long term.
(Featured image by Austin Distel via Unsplash)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
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