Chainlink has been flashing some signs of strength throughout the past few days and weeks, with the cryptocurrency’s securing a relatively strong foothold above the $17.00 region following its latest surge.
It has established the upper-$17.00 region as resistance, as a rally up to this area earlier today was followed by a strong rejection that sent the crypto plunging to lows of $16.50.
Bulls are now ardently defending against a dip below the $17.00 region, as a confirmation of this level as support may provide it with enough momentum to rally higher in the coming few days.
While speaking about the importance of this level, one analyst explained that as long as bulls guard against a dip below this level in the coming few hours, LINK could be well-positioned to rally as high as $19.00.
That being said, the same analyst also notes that a dip below this level could lead it to slide down towards $15.00 in the near-term.
At the time of writing, Chainlink is trading up just over 4% at its current price of $17.10. This is around where it has been trading for the past few days, as buyers have been ardently attempting to flip it into support.
In the near-term, whether or not this level can be flipped into support will likely be the sole factor that determines where it trends in the days and weeks ahead.
A failure for it to continue trading above this level could lead it significantly lower in the near-term.
It is important to note that LINK is still trading well-above where it was at just three days ago when it was trading at $14.00.
While speaking about the importance of $17.00, one trader explained that Chainlink’s reaction to this level should have significant implications for where it trends next.
He notes that while a defense of this level could catalyze a movement up towards $19.00, a sustained decline beneath it could lead the crypto down toward $15.00.
“This one doesn’t care and tries to break further up. As long as $17 holds, I think we’ll be able to reach $19. Losing $17 and I’ll aim $15.”
Image Courtesy of Crypto Michael. Chart via TradingView.
Where Chainlink trends in the coming few hours and days will likely depend largely on whether or not the aggregated crypto market maintains its strength.
Featured image from Unsplash. Charts from TradingView.