Chainlink has seen some volatile price action throughout the past couple of days, with its price oscillating between lows of $7.40 and highs of $8.80.
This volatility has come as it decouples from the price action seen by Bitcoin and the aggregated crypto market – which, for the time being, is a positive technical development.
Analysts are now widely noting that the cryptocurrency may be positioned to see significantly further upside in the near-term.
There are multiple factors supporting this narrative, including a potential “cup and handle” pattern that it has been forming, as well as a massive ascending channel this it is currently respecting.
The confluence of these factors – coupled with its decoupling from the rest of the markets – could provide it with the momentum it needs to start a fresh leg higher.
Chainlink Flashes Signs of Strength as It Decouples from Aggregated Market
At the time of writing, Chainlink is trading up over 3% at its current price of $8.53. This is around the price at which it has been trading throughout the past several days.
After surging towards $8.50 on August 1st, LINK has been largely caught within a wide trading range between $7.40 and $8.80.
These range lows were set during the selloff seen on Saturday that sent Bitcoin reeling down to $11,000 and Ethereum down to lows of $300.
Chainlink’s dip was incredibly short-lived, and within a matter of hours, it had recovered virtually all of the losses posted as a result of this movement.
It was even able to push higher and revisit its all-time highs at $8.80. From this point on, it has been trading between $7.80 and $8.70.
This price action has allowed the cryptocurrency to form what is called a “cup and handle” pattern.
While pointing to this pattern, one analyst noted that this could help to bolster Chainlink’s near-term outlook.
“LINK (USDT) daily chart – As price re-tests the all-time high area, this is a good spot for a cup and handle continuation, or ascending triangle continuation patterns to form.”
Image Courtesy of Cheds. Chart via TradingView.
LINK Remains Within Macro Ascending Channel
There’s no end in sight to Chainlink’s macro uptrend.
Another analyst recently put forth a chart showing that LINK has remained caught within its macro ascending channel that has been formed throughout the past year.
“LINK: Near perfect bounce on PF ML thus far,” he said.
Image Courtesy of Josh Olszewicz. Chart via TradingView.
As seen in the above chart, because Chainlink’s latest rebound came about at the middle point of this channel, it may once again push towards its upper boundary.
Featured image from Unsplash. Charts from TradingView.