Chainlink has seen a swift rebound today after posting some intense weakness yesterday. This has allowed it to recapture its position above $15.00, and it is now showing some signs of technical strength as analysts watch for further upside.
In the near-term, which direction it trends may depend largely on its ongoing trendline breakout, which could be enough to send it surging significantly further in the coming days.
One analyst believes that this breakout could mark the start of its next major bull trend.
It is also important to note that LINK was able to slow its descent before it broke below multiple crucial support levels. The defense of these levels is a bull-favoring sign.
That being said, it is currently pushing up against its first major resistance level, which sits around $16.
Analysts are noting that whether or not it can shatter this level may be the factor the determines just how high it can climb in the days and weeks ahead.
Chainlink Sees Mounting Momentum Following Recent Downturn
At the time of writing, Chainlink is trading up over 12% at its current price of $15.20. This marks a notable surge from daily lows of $12.88 that were set just over a day ago.
This sharp decline came about alongside that seen by the entire crypto market, with Bitcoin plunging to lows of $11,500 while Ethereum dropped as low as $380.
When LINK hit these lows, it was trading down significantly from its recent highs of $20.00 that were set just a week ago.
It may now be poised to push back up towards these highs due to an ongoing descending trendline break.
One analyst pointed to this technical breakout in a recent tweet, saying:
“LINK (USDT) working on a 4 hour trendline break”
Image Courtesy of Cheds. Chart via TradingView.
LINK Pushes Against Massive Resistance
One factor that may influence Chainlink’s near-term price action is the resistance that it is facing at $16.00.
Another analyst spoke about this in a recent tweet, also explaining that LINK’s macro bull trend makes dips like the one seen last night worth buying.
“Here we go, 20% bounce since last night. Buy the dips, don’t sell them. Sell at resistances. Approaching first resistance zone at $16 for about 23%.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Chainlink’s reaction to this level will likely be the factor that determines just how high it can climb in the weeks ahead.
Featured image from Unsplash. Charts from TradingView.