Chainlink has flashed some immense signs of strength throughout the past few days, with the cryptocurrency rallying towards its $12.00 resistance as its price continues seeing immense upwards momentum.
This strength also comes as the aggregated altcoin market begins showing signs of strength, with buyers sending Ethereum’s price flying higher today as the DeFi sector also rebounds.
This strength might just be getting started, and if today’s rally marks the start of a trend reversal amongst altcoins, there’s a strong possibility that blue-chip altcoins like Chainlink will be the first to see major inflows of capital.
One analyst is noting that LINK’s recent bounce came about close on the heels of a visit to its parabolic trendline.
The potent reaction it has posted to this level is encouraging and indicates that further upside could be imminent.
Where it trends next will likely depend mostly on Ethereum and the rest of the cryptocurrency market. ETH’s key overhead resistance that bulls need to surmount sits at roughly $450.
A break above this level will likely send altcoins like LINK exploding higher.
At the time of writing, Chainlink is trading up just over 7% at its current price of $11.78. This is around the price at which it has been trading throughout the past day.
Earlier this week, the cryptocurrency dived to lows of $9.80. This buying pressure at this price was intense, and it was able to bounce here on multiple occasions.
This could ultimately mark a long-term bottom, as buyers have sparked a relatively strong reversal throughout the past couple of days.
Whether or not this reversal has long-term implications for the cryptocurrency’s price will depend largely on Ethereum and its reaction to the resistance it faces at $450.
LINK Rallies After Tapping Key Trendline
Chainlink is trading up more against Bitcoin than it is against USD today, with BTC seeing a slight decline following yesterday’s $16,000 test.
Today’s rally against LINK’s BTC trading pair came about shortly after it tested a key parabolic trendline.
One analyst spoke about this in a recent tweet, noting that the rebound could indicate that “legendary continuation” is imminent.
“Moment of truth here for LINK. Legendary continuation continues or is the run over?”
Image Courtesy of Jonny Moe. Source: LINKBTC on TradingView.
Chainlink’s reaction to its $12.00 resistance, and Ethereum’s reaction to its $450 resistance, should provide investors with serious insights into where the aggregated market will trend next.
Featured image from Unsplash. Charts from TradingView.