Chainlink (LINK) can currently resist the falling market. The Bitcoin price has dropped another $1,000 since Monday, March 9th, and has now dropped below the $8,000 mark. This movement has maneuvered the entire market into a bloodbath.
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The current situation on the crypto market
Above all, the altcoins had to accept enormous losses but one of the top performers of the last weeks and months was able to hold its ground even in this difficult phase. Chainlink and the LINK token was able to assert itself against the strong selling pressure of the last few days.
Let us take a closer look at the current situation on the crypto market and see whether an investment in Chainlink (LINK) is currently still worthwhile.
Is Chainlink hype justified or not?
The hype around Chainlink should be felt by everyone by now. It is slightly reminiscent of 2017 when every project was subject to similar hysteria and prices shot up irrationally. But it’s different with Chainlink because it certainly has been able to position itself in an important area in recent months – decentralized Oracles. That is, above all, an extremely important use case for the emerging area of Decentralised Finance (Defi). So there do seem to be sound arguments why Chainlink is currently on everyone’s lips and has such a high rating.
That is, of course, only one side of the coin. The use case of the LINK token is clear, but does the current Chainlink price have any relation to the actual use of the token within the system? Probably not at all. Like most crypto projects, the price is based on a lot of speculation, which results in a possible positive future early on. The price increase has nothing to do with the actual use case of the token. This must be clear to everyone at this point in order to better assess own risk. if one already has or is planning an investment in Chainlink.
LINK still depends on the Bitcoin course
All hype will fade at some point. At the latest, if the Bitcoin price should fall further, even the last altcoin will suffer from the sale. In the end, the entire market holds and orients itself to the movement of the Bitcoin price. No wonder if the Bitcoin dominance is over 63%. Currently, many people are simply fleeing from BTC or altcoins, of which they expect to achieve the highest returns in the short term. This is without question Chainlink at the moment, because the hype level is certainly at the very top.
The question at this point is how the Bitcoin price will continue to behave and whether the hype is big enough to stand up to the falling market. Chainlink is a project that has managed to fill a niche within a niche. It remains to be seen whether this will be enough, in the long run, to maintain or even increase the price. It is important not to take any rash steps at this point and not to let FOMO (Fear Of Missing Out) guide you.
How to invest in Chainlink for the long-term?
If someone is interested in building up a long-term position in Chainlink (LINK), it is good to stick to the cost-aging strategy and invest in small steps to achieve a good average price. With this strategy, there is no need to worry about the right time to buy and can sit back and relax.
The Bitcoin Savings Plan can also be applied to any other altcoin/token. This procedure is also suitable for shares and other assets that you want to hold in the long term.
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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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