In a strong bounce back since the pits of early June, Chainlink (LINK) has been on the climb pushing up +75% over the last month, but as price action rejects from the upper trendline, is it too late to buy Chainlink?
LINK has been caught in a predictable range characterized by +/- 80% chop for more than a year, as Chainlink holders continue to weather a gentle downside slide following the 2021 crypto bull run.
Chainlink Heads Down as Chop Pattern Continues
With LINK now trading at a current price of $7.61 (a 24-hour change of -3.51%), ongoing price action seems to be no exception from this pattern.
The current downside move comes following rally rejection from a +75% move that saw the impressive rally top out at the upper trendline around $8.50.
Now in a technical retracement, LINK has so far bled out -10% of its value, with the drop stirring anxieties as LINK seemingly falls through a potential support level at $7.75.
With few localized supports below, price action now seems destined to retrace down the converged 20DMA and 200DMA around $6.80 (a possible -10% move from here).
There is little relief to be found in Chainlink’s indicators either, with the RSI still overheated signaling bearish divergence at 60.
And LINK’s dwindling performance on the MACD adds more fuel to the fire with bullish divergence marginalised to 0.094 and likely to flip bearish imminently.
The technical retracement and drop below the $7.75 price level leaves LINK’s risk: reward structure on the short-time frame looking bleak at 0.2 – a terrible entry characterized by almost overwhelming 5x downside risk.
With downside movements clearly dominating the chart, many investors are rotating capital to find more lucrative returns in the short time frame – with one unlikely proof-of-stake project garnering huge interest.
Bitcoin Heads for Proof-of-Stake with BTC20
Have you ever wondered what it would be like to own an entire Bitcoin? Sat on the sidelines watching BTC making yet another all-time high, pondering how much you could’ve made if you’d just been around in the early days?
Built to stand the test of time using ERC-20 proof-of-stake technology as its backbone, BTC20 holds the promise of minting an entirely new generation of Bitcoiners with the added promise of a greener network and passive income generation.
And now with more than $1.5m raised there is less than half of the presale supply left up for grabs.
Staking Rewards for Bitcoin Through BTC20
Holder benefits will be delivered through a novel stake-to-earn mechanism, set to launch in Q4 of this year, offering the promise of double-down rewards for those committed to holding, with rewards issued proportionally to staking quantity.
The staking mechanism will seek to distribute a huge swathe of locked tokens (a minimum of 14.95m unsold in the presale) in a gradual token release set to match the Bitcoin network.
Staking rewards are tied to both the staking quantity and blocks validated, with 6.5 BTC20 per 1 block validated forming the bedrock of the staking rewards.
This can be seen in the example below, where if a holder stakes 5,000 BTC20 for a one-year period, they will receive approximately 3,285 BTC20 in rewards – given a rough APY of 65.70%.
At an alluring presale price of just $1 per BTC20 token, interest is surging as Bitcoiner’s race to secure a slice of the 3 million tokens up for grabs in the presale.
Imagine the possible growth, if BTC20 gains even 10% of Bitcoin’s market cap (10% = $58bn today) then BTC20 would be worth $2,790 – a 278,900% increase.
With a tokenomic supply mirroring Bitcoin at 21m tokens, and a dedicated team of developers working on a roadmap with a 120 year view – the long-term sustainability of this project could very well outlive the original Bitcoin itself.
BTC20 has already gained traction with leading crypto analysts such as Jacob Bury, testament to the skyrocketing traction surrounding the launch of the BTC20 presale.
You can read the BTC20 whitepaper here to familiarise yourself with the next-generation technology underpinning this exciting project. Also don’t miss the chance to connect early with fellow holders on the BTC20 Twitter here.
Don’t miss your chance to join the ranks of early Bitcoin backers – become a wholecoiner today.
Buy BTC20 Here
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 of your capital.
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