Chainlink Likely to Continue Downtrend for a While - Price Analysis

Chainlink (LINK) was one of the star performing altcoins of H1 2019, surging from less than $100 million of market capitalization at the start of the year to well over a billion dollars (briefly) in July. The oracle crypto has been, understandably, correcting quite a bit since that parabolic runup,

We start with a weekly LINK/BTC chart to get the lay of the land. LINK has retraced as much as 54% since July, from all time highs. Trade volume has been consistently dropping.

Will it hold 21 EMA?LINK chart by TradingView

Price has been held lately at the 21-week exponential moving average (EMA), but has at present taken out that level. The correction has also taken out the important 0.618-65 Fibonacci retracement level - but on both counts, price has not closed the week out below either of these important levels.

Moving to the daily, we note the band of support at about 15k satoshis, which represents the chart’s main inflection point and the price peak from January 2019, which took a while to break in May.

Indicators mostly neutral hereLINK chart by TradingView

There may be a chance for a double bottom here, although the RSI is not showing increased strength. Volume is essentially asleep, and the MACD is pointing down after a small up-cycle. The histogram seems to be ticking back to the downside at a slightly accelerating rates.

If we draw a more general band of support from recent limits, we see that LINK is already making contact with support. It seems likely that LINK will eventually find support somewhere in this range, which has about 20% worth of downside to go.

This thick support will likely holdLINK chart by TradingView

The previous uptrend, however, is clearly broken and not likely to rebound soon.

Finally, on the LINK/USD(T) 2-day chart, we see a similar picture but with slightly worse-looking indicators. The histogram here is definitely accelerating to the downside at this time, with the MACD looking straight down. RSI has crossed over into the depressed bottom half of the range, after holding out since late July.

Rough indicatorsLINK chart by TradingView

Ultimately, the portrait here is one of mid-retrace. LINK looks like it has a while left to go, to stabilize after its parabolic runup. A bottom to the retrace looks nowhere yet in sight, although the strong inflection support seems like a good place for a bottom to eventually be found.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.

Binance Futures Launching Perpetual Contract for QTUM

On Wednesday (February 19), digital asset exchange Binance announced that its futures trading platform, Binance Futures, which went live in September 2019, is launching a perpetual contract for QTUM (currently the 34th most valuable cryptoasset by reported market cap).

Here is how Binance Info describes QTUM:

"Qtum is an open source Blockchain project that is developed by the Singapore-based Qtum Foundation.

"Qtum is a hybrid blockchain application platform.

"Qtum’s core technology combines a fork of bitcoin core, an Account Abstraction Layer allowing for multiple Virtual Machines including the Ethereum Virtual Machine (EVM) and Proof-of-Stake consensus aimed at tackling industry use cases.

"We believe this will allow Smart Contracts and Decentralized Applications to run on a familiar foundation while offering a robust environment for developers.

"The underlying technology uses an 'Account Abstract Layer', which acts as a bridge between the EVM and the Unspent Transaction Output model of Bitcoin Core. There will be Oracles and Datafeed functionality, allowing developers to create Smart Contracts built around trusted sources of information."

Binance Futures' new product is being launched at 08:00 (UTC) on 20 February 2020.

According to Binance's announcement, "to prevent market manipulation, Binance will implement a pricing limit of ±1% on the mark price within the first 30 minutes after trading starts."

Also, it is worth keeping in mind that, as with the NEO/USDT perpetual contract, which was announced last Sunday (February 16), "perpetual contracts on Binance Futures are similar to the trading pairs on the spot market," and they are "priced and settled in the same manner."

Binance Futures users will be able to choose between 1x and 50x leverage.

Here are some of the main specifications for the contract:

  • Base Asset: QTUM
  • Quote Asset: USDT
  • Settlement Asset: USDT
  • Contract Unit: 1 QTUM
  • Tick Size: 0.001
  • Minimum Contract Qunatity: 0.1
  • Maximum Contract Quantity: 1 million
  • Base Initial Margin Rate: 2.00%
  • Base Maintennce Margin Rate: 1.00%
  • Liquidation Fee: 0.5%


Featured Image Courtesy of Binance