Chainlink and other altcoins have been severely underperforming Bitcoin throughout the past few days, as BTC has pushed to fresh yearly highs while most altcoins remain down 50% or more from their highs that were set just a few days ago.
The immense selling pressure that has been placed on altcoins as a result of Bitcoin’s upswing is starting to subside, as bulls are beginning to propel some altcoins like Chainlink off of their recent lows.
LINK is in the process of erasing all of the losses that came about as a result of its recent selloff. Bulls are setting their sights on $11.00, which has proven to be heavy resistance on multiple occasions.
One analyst is noting that Chainlink is nearing the apex of a pennant it has been forming over the past few months.
It is currently being bolstered by a strong base of support, which is leading it towards a key descending trendline.
If it breaks out of this pattern, it could soon see a significant rally that matches that seen by BTC.
At the time of writing, Chainlink is trading up just under 10% at its current price of $10.70. This is around the price at which it has been trading throughout the past week.
Yesterday, however, bears attempted to invalidate LINK’s stability when they pushed it down to lows of $9.80.
These lows didn’t last long, as bulls have since stepped up and sparked a strong rally that has sent Chainlink rallying up towards its current price levels.
Unless the entire market turns lower, it does seem as though Chainlink is well-positioned to see some further upside.
Analyst: LINK is About to Reach the Apex of a Multi-Month Pennant
Since the beginning of August, Chainlink’s price has been forming a large pennant – and it is about to reach the apex of this formation.
Because of the strength seen today, it does seem as though a break above the descending trendline that has been guiding it lower is imminent. One analyst spoke about this significant technical formation:
“Wake me up when it’s above resistance.”
Image Courtesy of Teddy. Source: LINKUSD on CoinPriceWatch.
How Chainlink reacts to this pattern could provide investors with some serious insights into its near-term outlook.
Unless it breaks down from here, it does seem as though some serious upside could be imminent.
Featured image from Unsplash. Charts from CoinPriceWatch.