Recently, the cryptocurrency market has seen a continuous cycle of pumps centered around altcoins. Projects like Polkadot, Chainlink, Cardano, Waves, Enjin, Ignis, IOST, Moss, and Hedera have risen in succession. However, due to the irregular and rapid nature of these trends, it is difficult for investors to realize actual profits. For instance, Enjin Coin's price fluctuated between 0% and 100% within a single day, putting investors who entered at peak prices in a difficult position to recover their costs. This speculative and reactive trading often leads to losses and should be consistently avoided.
In this case, a better strategy may be to wait for the tokens you hold to be pumped, or to invest in undervalued tokens that have not seen significant increases recently and wait patiently. If short-term trading feels difficult or stressful, a more realistic approach is to gradually build positions in mainstream coins like Bitcoin or Ethereum during market corrections, and hold them long-term. This strategy is particularly effective for investors optimistic about the market's upward trend.
Currently, Bitcoin is continuously forming higher lows on the 4-hour chart, indicating a slow upward trend; while on the weekly chart, it is forming a long lower shadow within a red candle, suggesting a strong closing trend. Although there are viewpoints that its shape resembles a head and shoulders top, from a probabilistic perspective, a bullish outlook is not out of the question. If the trend continues, Bitcoin is expected to retest and break through the $40,000 level.
In the current market environment, one coin that is especially worth paying attention to is the leader in the DeFi space—Chainlink. Chainlink was launched in 2017 and went live on the mainnet in May 2019, steadily developing since then. It is currently the highest market cap DeFi project, with a market cap more than double that of the second-largest DeFi token, firmly holding a leading position. In the entire cryptocurrency market, Chainlink ranks ninth, indicating its high market cap.
The core function of Chainlink is as an oracle, connecting real-world data to Ethereum smart contracts. It provides secure and reliable price information, sports results, weather data, and more for the blockchain. This function is not only essential in the financial sector but also crucial in all decentralized applications, helping to enhance data credibility.
Chainlink is actively traded on major exchanges worldwide (including Binance) and is also listed on local platforms in South Korea such as Upbit and Bithumb. Its partner network continues to expand, collaborating with various blockchain projects to provide oracle solutions.
From a price perspective, Chainlink experienced a correction after reaching a peak in August 2020, and resumed an upward trend in January 2021, setting new highs. If Bitcoin's price stabilizes, leading DeFi tokens like Chainlink are likely to attract market attention again. However, given its current high price, it is advisable to adopt a more robust entry strategy such as waiting for a correction.
Today's market environment is very different from the bull market of 2017-2018. Currently, there are many altcoins, and situations where they rise sharply and then fall quickly are more frequent. As the market becomes more sensitive and volatile, investors must be more strategic and rational. Instead of chasing short-term profits, investment decisions should be based on structural trends and data analysis.
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