Chainlink has seen some mixed price action in recent weeks, with the cryptocurrency’s price plummeting to $ 10.00 and facing another rejection around $ 12.00.
This price action is primarily in favor of sellers as the inability to hold its support around $ 10.00 seems to indicate an underlying weakness in buyers. It could also suggest that the recent downward trend has seriously damaged the market structure in the medium term.
That said, the strong foundation of support it has built during its recent price action may ultimately act as a springboard that helps propel LINK significantly higher.
One analyst in particular is targeting a rise to $ 13.50 in the near term, explaining that his technical outlook is starting to brighten as the downtrend stabilizes.
Chainlink is showing signs of a slower decline as USD 10.00 support is strong
At the time of writing, Chainlink is marginally trading up at the current price of $ 10.78. This is around the price it has been trading at in recent days.
Buyers have fiercely defended themselves against a dip below the USD 10.00 region as this was a historically strong level of support for the cryptocurrency.
A continued dip down here could put Chainlink into a tailspin and lead it to see significant further downside in the coming days and weeks.
Where short term Chainlink trends can be somewhat dependent on Bitcoin, Ethereum and the rest of the cryptocurrency market, all of which are currently caught in a sideways trading attack.
If BTC or other major cryptocurrencies collapse, it could create a headwind that will force Chainlink below the crucial USD 10.00 level.
Analyst: LINK could climb to USD 13.50 thanks to strong support
An analyst, speaking about Chainlink’s current technical outlook, explained that he believes the cryptocurrency could be poised for a remarkable short-term rally.
He specifically points to the price region between USD 13.00 and USD 13.50 as the area to watch, noting that the USD 10.00 support is quite significant and could trigger an upward trend.
“The higher timeframe levels are pretty obvious on LINK. Approaching potential lower time frame entry zones with the potential to bounce to $ 12. Breaking $ 12 and $ 13-13.50 is in the offing, ”he said.
Image Courtesy of Crypto Michael. Chart via TradingView.
If the market continues to stagnate, support may start to erode just below Chainlink’s current price, causing it to see a sharp downward move in the near term.
Featured image from Unsplash. Charts from TradingView.