December 4th 2021, saw the crypto market crippled and fallen by more 20%. While the fall liquidated many trades and resulted in losses for many traders, these kinds of events in not abnormal in the crypto market due to their high volatility. Some traders are in days like this happy as they buy the dip at low prices and sell a higher prices as soon as the prices corrects. These low and high movements of the coin are makes the bearish and bullish trends in the market.
One of the cryptocurrency severely affected by today's blood bath is Chainlink (Link). Based on the KuCoin trading platform, LINK was trading at about $24.00 before the blood bath where it went down by more 70% to trade $5.50 on KuCoin. LINK later corrected during the day to $19.85, and if you bought it at the $5.50 price, you are swimming in huge profits now (The advantage of buying the dip).
Now, when I looked at the chart for LINK, I began wondering what could have happened if LINK touched or even when below $0.00? Worse to think was that, Is it even possible for a cryptocurrency coin or token to go below zero?
I then remembered that last year (2020) April 20th, the world was in shock, disbelief and flabbergasted when Oil fell below zero. It was on a Monday and the world battling with the coronavirus pandemic and many states have restricted movements and imposed lockdowns. Oil prices plunged by about 305% to trade below zero at -$36.73 a barrel. In this case, buyers were paid to take away oil as the costs of storage for the companies were unbearable.
Now, I am here wondering could have happened if LINK went to or even below zero? I do not know this has happened before with any cryptocurrency, but if you know any, please leave a comment below and care to why it happened and what happened after.
Will be reading your comments.
Remember, we learn from each other, and together we make this world a wonderful place.