Chainlink Could Soon Rally Higher as Bulls Defend Key Trendline
Chainlink has seen some mixed price action over the past few days, with buyers and sellers both struggling to gain control of its mid-term trend as its price hovers within the mid-$12.00 region.
This has long-been a consolidation channel for the cryptocurrency, with the resistance at $13.00 often proving to be too much for the token to handle. It did try to break above this level just a few days ago but was met with some intense resistance that instantly caused its price to plunge.
One trader is now noting that a move down towards the lower-$12.00 region could occur in the near-term, as this is where the lower boundary of its cloud formation currently sits.
Furthermore, this is also around the level where a descending trendline sits, which was just broken above during LINK’s latest push higher.
If it can continue holding above this level, the cryptocurrency could be well-positioned to see significantly further near-term upside.
For this to take place, bulls must remain in control of Bitcoin and the rest of the crypto market. Any sustained dip seen across BTC and ETH will likely lead major altcoins like Chainlink lower as well.
Chainlink Struggles to Gain Momentum as $13.00 Resistance Holds
The entire crypto market is currently caught within a consolidation phase, with Bitcoin trading just above $19,000 as Ethereum hovers below $600.
This has caused Chainlink also to see some sideways trading, currently trading down a few percent at its current price of $12.50.
Where it trends in the mid-term will likely depend on whether or not it can break above $13.00 anytime soon. A break above this level could spark a buying frenzy that sends it rocketing higher.
Trader Claims LINK is Safe from Downside So Long as Bulls Defend Key Level
One trader explained in a recent tweet that Chainlink could be well-positioned to rocket higher so long as bulls continue defending against a break below a trendline.
He notes that a continued bout of trading above this recently surmounted trendline could indicate that serious upside is imminent in the mid-term.
“The marines are in for a treat as long as the price remains above resistance. (Invalidation below it).”
Image Courtesy of Teddy. Source: LINKUSD on TradingView.
The coming days should shine a light on the cryptocurrency’s reaction to this key level. A further rejection at $13.00, or a break below this trendline, could result in Chainlink seeing some serious losses.
Featured image from Unsplash. Charts from TradingView