Chainlink's volatility has increased after the asset fell from its all-time high of $ 20. A 60% collapse caused the cryptocurrency to plummet, only to see a record-breaking spike that surpassed every intraday during the altcoin's staggering 2020 rest of the year.
And while it fell 60%, the weekly LINKBTC price charts suggest that the asset's parabolic progress is still intact, possibly pointing to more new highs in 2020. However, if the cryptocurrency fails to maintain its upward momentum, the decline could be significant.
Chainlink's parabola hasn't broken with the Bitcoin trading pair, new ATHs are coming in?
After so much and so fast to an all-time high of $ 20 per LINK token, the Chainlink price is now fluctuating and trying to strike some balance.
A 60% crash quickly turned around, with a record breaking 30% daily increase in the USD trading pair. But should analysts really watch the Bitcoin trading pair more closely?
Holding support for parabolic curves from LINKBTC | Source: TradingView
LINKBTC price charts show that the record-breaking upswing occurred when the cryptocurrency last touched the parabolic uptrend curve.
Related reading | Chainlink Weekly MACD Bearish for the first time since the parabolic rally began
The previous touch made Chainlink vertical and peaked at just under 170,000 sats – an increase of 300%. This final jump could cause the cryptocurrency to stay much higher, but a collapse could be catastrophic.
LINKBTC Broken Parabolic Curve Drawdown Targets | Source: TradingView
The failure of the LINKBTC parabola can be catastrophic for Oracle Altcoin
Chainlink is already down 60% from highs, but according to the laws of parabola and statistics that measure past asset declines, if such advances are broken, the decline may not be over.
Some of the most skilled traders in the world, such as career trader Peter Brandt, claim that parabolic advances, when broken, collapse by 80% or more.
An 80% drop in the LINKBTC trading pair would bring Chainlink down to just 33,000 satoshi. But as Bitcoin has shown, things could go deeper.
Related reading | The Chainlink downtrend could continue to hit new lows despite a record rebound
When Bitcoin lost $ 20,000 – a reasonable comparison to Chainlink's $ 20 – it fell over 84% to $ 3,200 at its all-time low. A comparable drop of 84% would bring Chainlink back to 25,000 sats.
And while Bitcoin is a great example of what happens when parabolic assets collapse, trading Ethereum for BTC can be a one-on-one comparison with Chainlink.
ETHBTC Broken Parabolic Curve Drawdown Example | Source: TradingView
ETHBTC fell a full 90% versus ATH versus Bitcoin when its curve was broken, falling back to a base that the asset built in the previous market cycle had. A 90% drop in Chainlink to the LINKBTC trading pair would bring the crypto asset back to its base with 15,000 sats.
Will Chainlink lose its parabolic support?
Featured image from Deposit Photos, Charts from TradingView