Chainlink (LINK) Suffers Devastating Correction, Here’s Why

$LINK is not a safe haven guys pic.twitter.com/49fi3wSakt — Ivan on Tech (@IvanOnTech) March 12, 2020

Altcoins have always shown greater volatility, and LINK is no exception, going through boom-and-bust cycles. This time, LINK also revealed that the latest rally was not sustainable, and once again resembled a pump-and-dump episode. Low LINK True Liquidity Led to Slippage LINK true liquidity was also much lower, leading to immediate slippage once the selling started. Reported volumes during the sell-off reach $582 million, though liquidity, as measured by CoinMarketCap, was just $520,000 on Binance. The Chainlink asset also relies on futures markets, where the recent spike may have led to shorting. LINK was viewed as one of the potential stars in the altcoin market, possibly going for a much higher valuation. But after sinking closer to $3 with no end of selling in sight, its peak may be $4 in hindsight. It was also one of the few assets to have made net gains since 2017, seemingly untouched by the altcoin bear market. But now, after the BTC rally was cut short, the asset is also facing a deeper correction. The LINK rally followed several other altcoins, selected for their somewhat higher liquidity. However, the latest correction was not the sole loss on the market. Previously booming altcoins like Tezos (XTZ) marked similar losses of close to 20%. What do you think about the latest LINK crash? Share your thoughts in the comments section below!

Images via Shutterstock, Twitter @IvanonTech

source: https://bitcoinist.com/chainlink-link-suffers-devastating-correction-heres-why/

TheBitcoinNews.com is here for you 24/7 to keep you informed on everything crypto. Like what we do? Tip us some BATSend Tip now!