When ChainLink fell from $ 18.80 to $ 14.50 in 30 minutes, analysts were shocked. After climbing a gigantic percentage, the token's fall occurred quickly and strongly.
Despite the slight recovery, analysts remain pessimistic.
A trader shared the graph below during the fall, arguing that ChainLink and Bitcoin falling together would be a "bad omen":
“LINK / USD and BTC / USD moved together in this destruction. The behavior changed significantly relative to the previous negative correlation, in which capital was spreading: when BTC went down, LINK fragmented and vice versa. I can't understand why, but I think it's a bad omen. "
Blockfyre, a cryptocurrency research and analysis company, echoed this skepticism. The company noted that LINK price action is progressively weakening:
Each subsequent rally getting weaker and weaker in price discovery during a parabola where no supports have been built will likely have to find buyers lower. This run looks like it’s at an end temporarily with how that daily candle formed. Ta by @ Pentosh1 pic.twitter.com/vhlT50cSW4
– Blockfyre (@blockfyre) August 18, 2020
“Each subsequent rally, getting weaker in price discovery during a parabola where no support was generated, will probably have to find buyers lower. This race looks like it is temporarily ending the way the daily sail was formed. "
Alleged sale of developers
This movement comes shortly after the analysis that the project developers, who own a good part of the coins, would be selling their positions.
According to Trust Nodes, they decided to make around $ 40 million in profit this month and could have a lot more LINK units ready to be sold.
At the start of the project, their genesis addresses indicate that 350 million LINKs were distributed to the public, while 300 million were for developers.