In a strong rally since the early June pits, Chainlink (LINK) has been up +75% over the past month, but with price action rejecting from the upper trend line, is it too late to buy Chainlink?
LINK has been stuck in a predictable range characterized by a +/- 80% drawdown for over a year now, as Chainlink holders continue to resist a mild slide lower after the 2021 crypto bull run.
Chainlink Heads Down as Cutting Pattern Continues
With LINK now trading at a current price of $7.61 (a 24-hour change of -3.51%), the ongoing price action appears to be no exception to this pattern.
The current move lower comes after the rally rejection of a +75% move that saw the impressive rally off the upper trend line around $8.50.
Now, in a technical retracement, LINK has so far lost -10% of its value, and the drop is anxiety-provoking as LINK apparently falls through a potential support level at $7.75.
With little support located below, the price action now looks set to pull back at the 20 DMA and 200 DMA converging around $6.80 (a possible -10% move from here).
There is not much relief on Chainlink indicators either, with the still overheated RSI indicating a bearish divergence at 60.
And LINK’s declining performance on the MACD adds more fuel to the fire with bullish divergence sidelined at 0.094 and likely to turn bearish imminently.
The technical retracement and drop below the $7.75 price level leaves LINK risk-reward structure on the short time frame looking bleak at 0.2, a terrible entry characterized by almost overwhelming 5x downside risk.
With moves to the downside clearly dominating the chart, many investors are rotating capital to find more lucrative returns in the near term, with an unlikely proof-of-stake project generating a lot of interest.
Bitcoin Heads For Proof-of-Stake With BTC20
Have you ever wondered what it would be like to have a whole Bitcoin? Did you sit on the sidelines watching BTC hit another all-time high, pondering how much you could have made had it been around in the early days?
Built to stand the test of time using ERC-20 proof-of-stake technology as its backbone, BTC20 promises to create a whole new generation of Bitcoiners with the added promise of a greener network and passive income generation.
And now, with over $1.5 million raised, less than half of the pre-sale supply remains available.
Gambling rewards for Bitcoin through BTC20
The benefits for holders will be delivered through a novel bet-to-win mechanism, which will launch in the fourth quarter of this year, offering the promise of doubled rewards for those committed to participation, with rewards issued proportionally to the amount wagered.
The staking mechanism will seek to distribute a large number of locked tokens (a minimum of 14.95 million unsold in the pre-sale) in a gradual token release set to match the Bitcoin network.
The staking rewards are tied to both the amount of staking and the blocks validated, with 6.5 BTC20 per 1 block validated forming the basis of the staking rewards.
This can be seen in the example below, where if a holder stakes 5,000 BTC20 over a period of one year, they will receive approximately 3,285 BTC20 in rewards, with an approximate APY of 65.70%.
At an attractive pre-sale price of just $1 per BTC20 token, interest is rising as Bitcoiner competes to secure a slice of the 3 million tokens up for grabs in the pre-sale.
Imagine the potential growth, if BTC20 earns even 10% of Bitcoin’s market cap (10% = $58 billion today), then BTC20 would be worth $2,790, an increase of 278,900%.
With a tokenomic supply that mirrors Bitcoin at 21 million tokens and a dedicated team of developers working on a 120-year vision roadmap, the long-term sustainability of this project could very well outlive the original Bitcoin itself.
BTC20 has already gained traction with top crypto analysts like jacob burytestament to the breakneck traction surrounding the launch of the BTC20 pre-sale.
you can read the BTC20 Whitepaper here to get acquainted with the next-generation technology behind this exciting project. Also, don’t miss the opportunity to connect early with other starters on the BTC20 Twitter here.
Don’t miss your chance to join the ranks of early Bitcoin backers – become a fullcoiner today.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all your capital.
