Chainlink And The "Coinbase Effect"
The “Coinbase effect,” where a cryptocurrency’s price surges after its listing is announced on Coinbase, is alive and well for Chainlink. The altcoin highly lauded by speculators surged 117.2 percent three days after its first listing on Coinbase Pro.
The coin saw a 16.3 percent increase 8 hours after its listing on Coinbase Pro, and experienced a 23.5 percent surge 12 hours afterward. Following LINK’s listing on the Coinbase retail platform, the coin surged 34.1 percent; 12 hours following the retail listing it saw a 62.8 percent cumulative jump.
Since the phenomenon was first observed, some sources reported that the Coinbase effect was diminishing. The diminishing impact on price could be attributed to Coinbase’s looser standards for adding digital assets or greater access to reliable exchanges.
ChainLink is a platform which attempts to bridge the gap between smart contracts on the blockchain and real-world applications, which often tend to be off the blockchain. The cryptocurrency uses “oracles”, which find and verify real-world data and bring it on-chain to be integrated into smart contracts.
Regarding the recent surge in price, what I'm personally anticipating is a traders taking profits and price pulling back. A very nice entry to go long would be below the $2 level which would represent a 61.8% retracement. However, the ideal level to go long is at the daily demand at $1.14.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
Ironically I had scooped up some LINK at 1.80 some weeks back. When I saw it ripping and make it to 2.60 in no time I decided to take the profits on the first short-term reversal.
Somehow I was clueless about the coinbase listing so watched continue to rip from the sidelines LOL.
I'm also look for a return into the low 2's and 2 flat for re-entry.
LOL...nice trade...I never heard of chainlink before yesterday...don't have the time to dive real deep into crypto, but looking to buy some Binance on the pull back.
Yeah you know how that goes...I'm frustrated I shot my winning horse in the head before it ran out of gas. Seems to be settling in at $3 area not sure I will get my $2 re-buy target.
And yeah, so many cryptos I can't keep up and I don't even look at stocks barely now. You are all over it. We need to catch up an talk some trading soon.