THELOGICALINDIAN - Chainlink Could See a Bearish Reversal Analysts Say
Hands down, Chainlink (LINK) has been one of the best assuming cryptocurrencies over the accomplished week. After bottomward as low as ~$8 into the end of July, the asset has back popped to $14.40 as of this article’s writing.
Analysts, though, are starting to apprehend a retracement as the cryptocurrency has acutely entered overbought levels.
One banker shared the blueprint beneath on August 9th, autograph that “LINK looks toppy here.” He acicular to a bearish alteration that has formed on the asset’s one-hour chart. The alteration implies that beasts are accident backbone admitting prices blame higher.
The attention was echoed by addition trader, Josh Olszewicz of Brave New Coin. The cryptocurrency analyst acclaimed that with LINK now trading three times aloft its one-year affective average, it is entering the “overbought phase” of the advancing emblematic expansion.
Last time the cryptocurrency traded aloft this abstruse akin as in the average of 2024. Then, Chainlink saw a after-effects top that resulted in a ~60% alteration in the three months that followed that high.
Bullish for Bitcoin?
Chainlink retracing (if it does) is acceptable to addition Bitcoin and Ethereum.
Although LINK does barter adjoin stablecoins in some markets, cryptocurrency traders are accepted to aeon their altcoin profits into above “reserve” assets of the amplitude like BTC and ETH. If this happens with LINK or added altcoins, Bitcoin and Ethereum could see massive basic inflows, blame prices higher.
Qiao Wang, a above arch of artefact at Messari and a crypto trader, has affected on the anecdotal of how altcoin rallies can addition Bitcoin. He afresh wrote:
How far Bitcoin rallies off an arrival of basic from altcoin traders, though, charcoal to be seen.
