Chainlink may have rebounded with a record-breaking single-day rally, it did so after a 60% fall from its all-time high set just over a month ago.
A key indicator measuring momentum has flipped bearish on weekly timeframes for the first time since the parabola began. Is this a sign that momentum is about to slide further to the downside?
Chainlink Flips Bearish For First Time Since Parabolic Rally Started
Chainlink cryptocurrency tops the list of the industry’s best-performing tokens in 2020 and the years before it. Chainlink was launched during the bear market and has never had a drawdown phase like most other cryptocurrencies.
Even devastating flash crashes to nearly zero have always bounced back by stronger than ever, setting record high after the next.
Related Reading | Chainlink 30% Rally Closes Record “Best” 2020 Daily Performance
After breaking its previous record in May, the crypto asset went into full price discovery mode and reached a peak of $20 per LINK coin.
The cryptocurrency since crashed to just $8, then from there rebounded to $11 in a shocking record recovery rally. But before bulls begin celebrating, the weekly MACD could be signaling a major momentum change and that a deeper correction could be next.
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