Has the Chainlink cryptocurrency become a huge bubble?

Chainlink (LINK) has been one of the most powerful crypto assets in the last few weeks and months. However, many investors are concerned about competition and the risk of a bubble.

Despite LINK’s recent performance, some investors are said to be uncertain about the future of the asset. Santiment, a blockchain analytics company focused on investor sensitivity, shared the tweet:

“LINK grew by an incredible 68.7% last week. However, we are seeing signs that investors are becoming increasingly uncertain during their long-term rally. Speculative interest has exploded and we have explored some of the features of this coin. “

LINK at present

To support this sensitivity, the company recalled three key metrics related to LINK. These are the three metrics:

• LINK deposits on crypto exchanges have reached a historically high level. This suggests that there are a large number of cryptocurrency holders trying to liquidate their position. Previous peaks in LINK deposits at exchange offices have seen new highs.

• The number of daily active LINK deposits also increased.

• The average dollar investment metric in Chainlink began to decline. This last happened near the maximum in February 2020.

Expecting a drop?

The decline and correction of LINK is also expected by Zeus Capital, a cryptocurrency fund that has become famous in recent months with the release of a report showing that Chainlink may fall by as much as 99%.

The company still expects Chainlink to fail despite LINK’s explosive price performance, which many saw as the liquidation of Zeus’ partners. On August 11, she wrote the following statement, arguing that the end was near and that they considered LINK to be a bubble:

“LINK and its market capitalization is already larger than for leaders in the field, such as Dropbox, Western Union and Lufthansa. Users will never pay more than $ 12 for a data search. Speculative buying LINK is a textbook example of a bubble. The end is near. “

However, it seems that Chainlink is constantly increasing and the potential bubble can continue. The following chart shows the mentioned increase of more than 30%.

We are heading to an area without ATH resistance. This exponential growth can thus fall at any time, even from a technical point of view. We should not forget that the sharper the growth, the sharper the correction. If we kept LINK in our wallet, it’s time to pick up most of the position.

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