Recently it was brought to my attention how well LINK and BAND have come to be closely been correlated over the past few months). However, I have begun to notice an interesting wedge that has some particular peculiarities.
For those who have not heard of LINK and BAND, Chainlink (LINK) and the Band Protocol (BAND) were both created in 2017 and are the two of the most well-known blockchain based oracle providers. For those who do not know what a "blockchain based oracle provider" is, it is roughly a means for cryptocurrency smart contracts to come to consensus in order to securely use reliable external data via APIs (I recommend a quick google search for a more thorough explanation). Chainlink was the first major oracle network to launch and is more widely used, but Band Protocol is the second largest and has branded itself as a cheaper, faster competitor in this space.
As for the chart, as one can see, when one charts out LINKUSD / BANDUSD , an interesting wedge appears to have formed. Of particular interest, whenever the price of LINK has extended upward out of the wedge in this relationship (particularly during downtrends for bitcoin ), it has often indicated a dip in BAND that later triggers a reversal uptrend.
As to whether this relationship continues is anyone's guess. I should especially note that since this pattern has also formed an ascending triangle , there is also the possibility that LINK might be "winning" in this relationship and this is indeed a breakout. This could hold especially true as well since Chainlink is built upon the Ethereum blockchain (ETH) which has recently been seeing historical highs, whereas Band Protocol is built on top of the Cosmos blockchain (ATOM). Hence, there is a good possibility as well that this "BAND trend" may be coming to an end.
As always, this is solely my opinion and not at all meant as financial advice, but an interesting pattern nonetheless so please like or comment if you agree or have any opinions/facts that differ from the above.
When Band breaks out parabolic from Links price, please make an updated chart! This was clean.
crypto_trends
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@moochacho, Indeed I am wondering if/when a parabolic breakout might occur. At least this time around it once again acted as a good BAND price predictor as the price of BAND sure enough headed up after I posted this causing the retreat back into the wedge.
TyCtPm88
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@crypto_trends, this was a very good chart man. do you have a telegram group?
lucgarc1020
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Great explanation. Thank you for taking time to share your opinion with us.
crypto_trends
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@lucgarc1020, Your welcome, thank you for taking the time to read my opinion.
Cryptough
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Interesting. Thank you for sharing your thinking. Might be a good hedge.
pvqcontact
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Hi, just off-topic. Can you teach me how to make that type of chart? Normal chart can be LINKUSD or BANDUSD, but how did you make the chart LINKUSD/BANDUSD? Many thanks!
xKnBr
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Thank you!
Cloud1913
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What happens when it breaks out of the wedge?? Also thank you so much for the explanation and charting.
crypto_trends
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@Cloud1913, that is a good question. I suppose if a wedge breakout does occur, the result should be either LINK going up significantly or BAND receiving a sudden drop while LINK does not. In my opinion, it very well might depend on the price of BTC, as if BTC does not plummet, it is quite possible that LINK could have a significant breakout and leave BAND behind, however a negative trend on BTC very well might cause significant drops in BAND (since it is the less popular of the two). All that being said there is always the possibility that the wedge breaks downward and BAND wins the relationship. Either way, I think it should be an interesting trend to watch.