Chainlink Posts Strong Rebound; Why It Could Soon See a Bullish Trend Shift
- Chainlink has been severely underperforming Bitcoin throughout the past few weeks, with the crypto remaining well below its 2020 highs despite Bitcoin’s strength
- Many altcoins have seen similar performance, as the proverbial ‘altseason’ that investors are watching for remains elusive
- The crypto has seen a notable rebound throughout the past few days, with its price forming what appears to be a local low around $13.00
- This region has long held as support, and a continued defense of it could allow for significantly further upside
- One analyst is noting that the strength seen against Bitcoin and USD indicates that LINK could be poised to see further upside in the days ahead
Chainlink has seen a notable rally from its recent lows, with the cryptocurrency surging as bulls try to establish its recent lows as a long-term bottom.
Where it trends in the mid-term will undoubtedly depend on Bitcoin, Ethereum, and the rest of the market, but the strength of its ongoing upswing is promising and may be a sign of a trend shift.
One analyst is now pointing to LINK’s USD and Bitcoin trading pairs, noting that it is flashing signs of strength against both of them.
This could mean that it will soon break the key resistance it is currently testing.
Chainlink Shows Signs of Strength as Bulls Target Key Resistance
At the time of writing, Chainlink is trading up over 10% at its current price of $15.70. This marks a notable rise from its recent lows of $13.40 set just a few days ago.
The selling pressure seen around its current price has been significant, as this has long proven to be a resistance level for the cryptocurrency.
Another rejection here could be dire, but if bulls can shatter this level, it could catalyze a parabolic move higher.
LINK is Showing Signs of Strength Against Both BTC and USD
One trader recently mused the possibility that Chainlink will soon gain some serious ground against both USD and Bitcoin.
The chart he offers shows an upside USD target of around $16.20, which would mark a serious upside movement for the crypto.
“I like the view on LINK today, if the ground holds steady both the cash pair and the BTC pair are in really good shape for momentum to the upside.”
Image Courtesy of Cold Blooded Shiller. Source: LINKUSD on TradingView.
The coming few days should shine some light on where the entire market should trend next, as altcoins like Chainlink will likely only thrive if BTC and ETH can see continue stability.
Featured image from Unsplash. Charts from TradingView.