Chainlink has been seriously underperforming Bitcoin lately, despite its huge and dedicated loyal community and ongoing fundamental growth.
The growth from a small ICO to a multi-billion dollar project has been incredible, and many still believe the future is brighter than ever.
From a technical point of view, the mediocre performance has recently caused crypto to lose some serious value against Bitcoin.
One trader notes that his BTC price could double and it would still only mark a bearish retest from a previous level of support.
This underperformance is not unique to Chainlink as many other major cryptocurrencies have suffered massive losses of late, with most of the capital going to Bitcoin and Ethereum as investors avoid smaller tokens.
However, there will eventually be a capital rotation, away from BTC and into smaller altcoins, which can see tokens like Chainlink at a huge advantage. This is a possibility that analysts say is incredibly likely.
Chainlink continues to lose ground against Bitcoin as Altcoins slide down
At the time of writing, Chainlink is trading just over 4% the current price from $ 11.28. It has also lost some serious ground against Bitcoin and is showing signs of massive weakness on its BTC trading pair.
The crypto has established the lower USD 11.00 region as a strong support zone, but the continued decline suggests that this level could break soon.
The weakness seen on its BTC trading pair could also slow its growth against the USD, making it vital that it gains some ground against the benchmark crypto in the short term.
Analyst: LINK could see a strong rise once Altcoin Market is recovering
An analyst pointed to Chainlink’s Bitcoin trading pair to show just how weak the cryptocurrency has been lately.
He notes that the longer it floats lower against BTC, the more potential it has to see a massive rebound once the aggregated altcoin market turns around.
LINK: Link / BTC could double against BTC and it would still be just a bearish retest. A little crazy to think about. The more it dumps, the more potential a lung has when alts resurface. I have to be patient until then. “
Image Courtesy of DonAlt. Source: LINKBTC on TradingView.
For now, Bitcoin remains the leader of the market and altcoins are unlikely to gain ground against it any time soon.
However, this can change in the blink of an eye and the capital will likely turn to altcoins once it enters a lengthy consolidation phase.
Featured image from Unsplash. Charts from TradingView.