Chainlink has been seeing some turbulent price action in recent weeks, with the cryptocurrency rallying as high as $20 before incurring a massive influx of selling pressure that eventually sent it reeling as low as $12.
This strong downtrend has struck a major blow to its technical structure, causing it to flash some signs of weakness as it consolidates around $15.
Analysts are noting that it is now trading between key support at $14 and crucial resistance level at $16. Which one of these levels is broken first may be the factor that determines which direction it trends in the near-term.
One analyst believes that upside is still ahead for LINK, although he does note that it may first have to drop to fresh lows before it can surge towards an upside price target of $30.
Chainlink Struggles to Break Crucial Resistance
At the time of writing, Chainlink is trading down just over 5% at its current price of $15. This marks a notable decline from its daily highs of over $16 that were set when bulls attempted to shatter this resistance level.
It is important to note that the rejection here struck a blow to its technical strength, which had been mounting as a result of the token’s rebound from lows of $12.
Whether or not it can see significantly further upside will likely depend on its reaction to its high time frame resistance at $16. Another rejection here may cause it to see some downside in the near-term.
One analyst spoke about the key levels he is closely watching, explaining that he believes it can see further upside as long as it holds above $14.
“And the $16 rejected here. If LINK holds the $14-14.5 level for support, we might see another rally towards $17+.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Here’s How High LINK May Rally if Bulls Defend Bullish Market Structure
While speaking about this, the trader explained that he believes LINK may sweep the region below $12 before garnering an influx of buying pressure that sends it up to $30 or higher.
“I can see LINK coming back down to sweep what right now looks like the pivot for the bottom of this correction. It isn’t done yet. 30$ LINK coming to a computer screen near you.”
Image Courtesy of Cantering Clark. Chart via TradingView.
How Chainlink trends in the coming several days should offer insight into just how strong its market structure truly is.
Featured image from Unsplash. Charts from TradingView.