This One Altcoin’s Decorrelation with the Crypto Market is Baffling Analysts
The aggregated cryptocurrency market has been closely following Bitcoin over the past couple of weeks, with altcoins slightly underperforming BTC during bearish trends, and outperforming the benchmark crypto during uptrends.
Over the past few days, the market-wide trend has been overwhelmingly bearish, with Bitcoin’s break below its key support at $9,500 yesterday sparking a selloff that led many altcoins to plummet 10% or more.
There is one major crypto, however, that has not shown any signs of being correlated to the aggregated market’s trend, leaving many analysts scratching their heads as to what could be causing this.
Chainlink’s Multi-Year Journey is One for the History Books
Throughout 2019 and 2020, Chainlink has been caught within an insane uptrend that has allowed it to set fresh all-time highs just a week ago that far surpass those seen during its late-2017 highs of $1.30.
The cryptocurrency’s unprecedented uptrend first began in May of 2019, when the crypto rallied from lows of $0.46 to highs of $1.43.
This momentum was not fleeting, however, as bull were then able to extend the uptrend until the altcoin reached highs of just over $4.00. From this point, bears pushed the cryptocurrency down to lows of $1.60, with it subsequently falling into a bout of choppy trading for multiple months.
This sideways trading was relatively brief however, as Chainlink once again beginning a parabolic ascent that led it to set fresh all-time highs just a week ago when it rallied up to nearly $5.00.
LINK Bucks the Ongoing Downtrend; Maintains Recent Gains
Even in the face of the market-wide bearishness seen over the past few days, the crypto has been able to post steady gains, despite trading slightly off of its recent highs.
This strength has baffled analysts, leading many to question how it is possible for one altcoin to see such intense momentum that allows it to decorrelate from the aggregated crypto market.
Luke Martin, a prominent and well-respected trader and analyst, spoke about this in a recent tweet, telling his followers that it has been able to keep posting higher lows and higher highs over the past two years.
“Altcoins are highly correlated. Each cycle brings them all up and all down together. Except for LINK. Uptrend with higher lows & higher highs for 2 years. Absolutely insane. Fun to watch but I honestly don’t understand how it’s been able to do this,” he explained.
Altcoins are highly correlated. Each cycle brings them all up and all down together.