Chainlink has been severely underperforming Bitcoin as of late, despite its enormous and devoutly loyal community and continued fundamental growth.
This isn’t uncommon for the crypto, as it often trends independent from the rest of the market, seeing some of its largest rallies during the depths of the bear market seen over the past few years.
Its growth from a small ICO to a multi-billion-dollar project has been incredible, and many still believe that its future is brighter than ever.
From a technical perspective, its lackluster performance as of late has caused the crypto to lose some serious value against Bitcoin.
One trader is noting that its BTC price could double and it would still only mark a bearish retest of a previous support level.
This underperformance isn’t unique to Chainlink, as many other major cryptocurrencies have seen massive losses as of late, with most capital being directed to Bitcoin and Ethereum as investors avoid smaller tokens.
Eventually, however, there will be a capital rotation event away from BTC and towards smaller altcoins, allowing for tokens like Chainlink to see massive upside. This is a possibility that analysts believe is incredibly likely.
Chainlink Continues Losing Ground Against Bitcoin as Altcoins Slide Lower
At the time of writing, Chainlink is trading down just over 4% at its current price of $11.28. It has also lost some serious ground against Bitcoin and is showing signs of immense weakness on its BTC trading pair.
The crypto has established the lower-$11.00 region as a strong support zone, but its continuous descent suggests that this level could soon break.
Its weakness seen on its BTC trading pair may also inhibit its growth against USD, making it vital for it to gain some ground against the benchmark crypto in the near-term.
Analyst: LINK Could See a Powerful Rise Once Altcoin Market Rebounds
One analyst pointed to Chainlink’s Bitcoin trading pair to demonstrate just how weak the cryptocurrency has been as of late.
He notes that the longer it drifts 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 only be a bearish retest. Kind of crazy to think about. The more it dumps the more potential a long has once alts do turn up again. Just gotta be patient till then.”
Image Courtesy of DonAlt. Source: LINKBTC on TradingView.
For now, Bitcoin remains the leader of the market, and altcoins are unlikely to gain any short-term ground against it.
However, this could change on a dime, and capital will likely rotate towards altcoins once it enters a prolonged consolidation phase.
Featured image from Unsplash. Charts from TradingView.