ChainLink (LINK) Price Action Suggestive of Pump-And-Dump
LINK market prices moved counter to the general altcoin market - but this activity was seen as suspicious.
Chainlink (LINK) looked like one of the success stories of 2019, rallying while other altcoins were sinking. Based on AI-powered analysis, the trading patterns of LINK were suggestive of concerted price-pumping actions, reported VentureBeat.
LINK went through a strong appreciation while other altcoins were sliding, with extremely successful daily gains at some points of above 20%. Currently, the asset is sliding, as there is no support from active trading. The project is also sliding after launching its mainnet, an event that usually affects the price negatively.
LINK was also a part of a batch of assets that went through better price-performance, based on their activity on Binance. Cosmos (ATOM) showed a similar price performance.
At one point, LINK appreciated due to a trading error, causing a price anomaly, only adding to the hype. There is no information on which entities would pump the coin, but such patterns are not unusual for smaller assets.
LINK currently trades at $1.73, and is out of the top 20 of coins. LINK started off from the $0.50 range in May, quickly climbing to a yearly peak above $4. Now, LINK is unraveling, sinking to a lower range, with the potential to return to pre-boom levels. LINK has been trading since late 2017, but only now went through a large-scale rally, following its Binance listing.
Despite the price fluctuations, ChainLink is seen as one of the more active crypto startups, with the aim of building an ecosystem to rival larger networks. The project aims to offer oracle services, delivering outside real-world data to smart contracts.
Recently, ChainLink took the Aelf project on board, providing oracle services for its blockchain:
The ChainLink project is also presenting at this year’s Invest: Asia in Singapore, keeping up the positive public profile of the project.
However, price action for digital assets does not reflect exactly the qualities of a project. With unregulated exchanges and low liquidity, it is easy to sway an asset’s price within hours in the desired direction.