Chainlink may be on the cusp of a big movement as volatility levels plummet 🚨 This article is 5 years old...
Chainlink may be on the cusp of a big movement as volatility levels plummet
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Updated: May. 7, 2020 at 7:19 am UTC
Photo by Hunter Newton on Unsplash
Chainlink’s immensely bullish market structure formed throughout 2019 allowed it to set fresh all-time highs just a couple months ago, but this strength was not enough to make it immune from seeing intense losses during the market-wide meltdown in mid-March.
After reeling from all-time highs of just under $5.00 to lows of $1.50, LINK has since been able to post a “V-shaped recovery” that has led it back into the upper-$3.00 region.
It now appears that the crypto could be on the cusp of starting its next parabolic journey to fresh all-time highs, as one analyst is noting that its position within a long-established growth curve seems to point towards it seeing major near-term upside.
This also comes as Chainlink’s volatility begins diving, a sign that it could be coiling up for a big movement.
Chainlink sees diving volatility levels as sideways trading persists
At the time of writing, Chainlink is trading down nominally at its current price of $3.68.
This is around the price point at which it has been trading at throughout the past several days, as its buyers and sellers have reached an impasse as it oscillates within a relatively wide trading range in the upper-$3.00 region.
One byproduct of this range-bound trading has been diving volatility levels.
As indicated by data from the blockchain analytics platform IntoTheBlock, the cryptocurrency’s volatility levels have been cratering after setting a 2020 peak on April 9th.
This decline in volatility came about in the midst of the cryptocurrency’s price recovery from its March lows, and declines of this magnitude are historically short-lived.
If this trend continues to replicate itself in the future, then Chainlink could be on the cusp of making a major movement in the days and weeks ahead.
LINK’s growth curve points to an imminent parabolic movement
As for whether or not this movement will favor buyers or sellers, the cryptocurrency’s multi-year growth curve seems to suggest that it will help push Chainlink to fresh all-time highs.
One popular cryptocurrency analyst named Cole Garner mused this possibility in a recently offered chart, showing that LINK’s price trends have been strictly governed by parabolic cycles taking place above a large growth curve.
If this pattern replicates itself in the weeks ahead, Chainlink could soon rally by 90 percent up to fresh highs of roughly 0.00073 BTC before seeing another retrace that allows it to set a higher-low.
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Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
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IntoTheBlock is a data science company applying cutting-edge research in AI to deliver actionable intelligence for the crypto market.