Chainlink volatility is increasing after the asset fell from its all-time high of $20. A 60% collapse sent the cryptocurrency plummeting, only to see a record-breaking bounce that beat any intraday throughout the rest of the altcoin’s amazing 2020 so far.
And although there was a 60% crash, LINKBTC weekly price charts suggest that the asset’s parabolic advance is still intact, potentially pointing to more new 2020 highs ahead. But if the cryptocurrency can’t maintain its upside momentum, the fall down could be substantial.
Chainlink’s Parabola Hasn’t Broken On Bitcoin Trading Pair, New ATHs Inbound?
After such a powerful rise and so quickly to an all-time high of $20 per LINK token, Chainlink price is now reeling and attempting to establish some equilibrium.
A 60% crash quickly turned around with an over 30%, record-breaking daily climb on the USD trading pair. But should analysts actually be watching the Bitcoin trading pair more closely?
LINKBTC Parabolic Curve Holding Support | Source: TradingView
LINKBTC price charts show that the record-breaking bounce took place just as the cryptocurrency made its most recent touch of the parabolic uptrend curve.
Related Reading | Chainlink Weekly MACD Bearish For First Time Since Parabolic Rally Began
The previous touch sent Chainlink vertical and to a peak of just under 170,000 sats – a 300% increase. This latest bounce could send the cryptocurrency continuing much higher, but a breakdown, however, could be disastrous.
LINKBTC Broken Parabolic Curve Drawdown Targets | Source: TradingView
LINKBTC Parabola Breakdown Could Be Disasterous For Oracle Altcoin
Chainlink has already fallen 60% from highs, but according to the laws of parabola, and statistics measuring the decline of assets historically when such advances are broken, the drop may not be over.
Some of the world’s most experienced traders, such as career commodities trader Peter Brandt claim that parabolic advances, when broken, collapse by 80% or more.
A fall of 80% on the LINKBTC trading pair would take Chainlink to a value of just 33,000 satoshi. But as Bitcoin has shown, things could go even deeper than that.
Related Reading | Chainlink Downtrend Could Continue Toward New Lows Despite Record Rebound
When Bitcoin lost $20,000 – a reasonable comparison to Chainlink’s $20 – it fell over 84% to $3,200 at the low. A comparable 84% fall would take Chainlink back to 25,000 sats.
And while Bitcoin is a strong example of what happens when parabolic assets break down, Ethereum trading against BTC may be a more one-to-one comparison with Chainlink.
ETHBTC Broken Parabolic Curve Drawdown Example | Source: TradingView
ETHBTC fell a full 90% from ATH against Bitcoin when its curve was broken, dropping back to a base the asset built during the previous market cycle. A 90% fall in Chainlink, on the LINKBTC trading pair, would take the crypto asset back to its base, back at 15,000 sats.
Will Chainlink lose its parabolic support?
Featured image from Deposit Photos, Charts from TradingView
