Chainlink has seen one of the strongest rebounds from its recent lows across the aggregated altcoin market, with its price rocketing higher as investors begin rotating capital into “risk-on” assets as Bitcoin and Ethereum show signs of strength.
Its rebound is showing few signs of slowing down, and a move back up to its all-time highs could be on the table if the wider crypto market continues showing signs of strength.
One analyst is now pointing towards a diagonal resistance level that has been formed over the past few days, noting that a break above this level could spark the next leg higher.
He also notes that this recent momentum stems from a break above the upper boundary of a triangle formation that it had previously been caught within over a mid-term time frame.
The coming few days and weeks could provide it with further momentum, potentially sparking a sharp upswing if Bitcoin and Ethereum continue climbing higher.
Chainlink Rallies as Broader Crypto Market Shows Signs of Strength
At the time of writing, Chainlink is trading up just under 6% at its current price of $12.85.
This marks a massive surge from where it was trading just over a week ago when bears attempted to spark a selloff that sent it to lows of $9.60.
Where it trends in the short-term could have some serious implications for its macro trend, as a push higher from here could mark the start of its next parabolic move that sends it rocketing towards, or even past, its previous all-time highs of $20.00.
This move will be bolstered if the wider market remains strong, with BTC and ETH’s ongoing uptrends leading investors to rotate more capital into high beta assets like Chainlink.
Analyst: LINK Likely to Push Higher as Technical Strength Mounts
While sharing his thoughts on Chainlink’s current technical outlook, one trader observed that it is currently trading just below a diagonal resistance level that it is attempting to break.
If broken, he believes that this could spark a move that sends it rocketing significantly higher in the days ahead.
“LINK – Key S&R flip holding as Support over the last few hours. Slow bleed/chop & Diagonal resistance on the h1. When the diag breaks I’m expecting another leg up. The reaction at the EQ will be very important.”
Image Courtesy of UB. Source: LINKUSD on TradingView.
The coming few days should prove to be pivotal for major altcoins like Chainlink.
Featured image from Unsplash. Charts from TradingView.