It has been an incredibly volatile year for Chainlink, with the highly bullish crypto rocketing to fresh all-time highs in early-March before it lost its momentum and found itself caught within a firm downtrend that led it to erase some of its recent gains.
It is important to note that the crypto is still trading up nearly 100% from where it started the year, and it could be positioned to see further upside in the days and weeks ahead, with one analyst noting that it could even rally another 100% from its current price levels.
Despite this, the crypto is pushing up against a key resistance region, and analysts are noting that the selling pressure here could be enough to put a temporary end to its recent uptrend.
Chainlink Closes Below Key Resistance as Crypto Market Declines
At the time of writing, Chainlink is trading down over 11% at its current price of $3.02, which marks a notable decline from daily highs of $3.45 that were set yesterday.
The crypto saw some intense bullishness this week, rallying from lows of $2.25 to highs at $3.45 set yesterday, with this bullishness coming about in tandem with that seen by Bitcoin.
The recent decline from these highs has led Chainlink to close its daily candle below a key support level, which is a bear-favoring that could lead the cryptocurrency to see a near-term retrace in the days and weeks ahead.
Josh Rager – a prominent crypto analyst – spoke about this daily close below resistance in a recent tweet, noting that a failure for BTC to push higher will likely be a grave sign for LINK in the near-term.
“LINK update: From last chart, still potential to hit up at $3.86 but unfortunately LINK did not get the daily close we were looking for. Closed below the resistance level on the 1D. Hopefully, if BTC can push up, this will be enough to push LINK, if not, could see a retrace here,” he noted.
Image Courtesy of Josh Rager
LINK Could Rally 100% Or More If It Builds Confluence With BTC
Another popular analyst on Twitter noted that LINK’s confluence with Bitcoin sits within the $6.00 region, meaning a visit to this level could be seen if the aggregated crypto market shifts back into bull’s favor.
“Chainlink: Respecting the $3.40 quite nicely here. Would be looking for a short term scalp if we make another dip towards $2.80 (confluent with BTC at $6.750-6.800). Not a long term buy there,” he noted.
Image Courtesy of Crypto Michaël
In the near-term, although a 100% rally may seem far-fetched, it is imperative to keep in mind that the crypto does tend to move in parabolic cycles, with its rise seen this week potentially marking the start of a much bigger movement.
Featured image from Shutterstock.