Chainlink has been incredibly strong for the past few days and has been fully exposed to the uptrend in the aggregate cryptocurrency market as bulls take full control.
Its price has passed several key resistance levels that have slowed its rise in the past, and it is just a stone’s throw away from hitting new all-time highs.
The cryptocurrency is facing strong resistance in the lower region of $ 16.00 as any attempt to get beyond that zone has resulted in massive inflows of selling pressure.
If it stays below this price level, there could be further sustained consolidation or downward movement in the short term – depending on how the aggregate market develops in the coming days and weeks.
A trader is now emphasizing the importance of this price level, noting that a break above it could catapult Chainlink to new all-time highs and potentially open the gates for a move into the region around the mid-$ 20.00.
To do that, the rest of the market will have to remain strong, with BTC holding its position above $ 19,000 while ETH holding $ 600.
Chain link is approaching critical resistance level
At the time of writing, Chainlink is trading just under 3% at its current price of $ 15.65. This is roughly what it was trading at over the past day.
It has made two attempts to break above $ 16.00 in the past 24 hours, but each has faced influxes of selling pressures that have stopped it on its trail.
Where the LINK trends move towards the end of the year will likely depend largely, if not entirely, on the continued response to that level.
Analysts claim that LINK could soon hit new highs once a key level is broken
A dealer explained in a recent tweet that Chainlink is about to hit new all-time highs, with $ 16.00 being the last major resistance level it needs to receive support.
Once this resistance-support flip occurs, the cryptocurrency could see a massive surge in price, allowing it to post parabolic progress.
“LINK won’t take long to run out of $ 16 and new ATHs,” he said, pointing to the table below.
Image Courtesy of Kaleo. Source: LINKUSD on Twitter.
As the short term trend of Bitcoin and Ethereum is likely to have a strong impact on Chainlink’s price.
As long as they stay within their current uptrends, there is a strong possibility that an uptrend is imminent.
Featured image from Unsplash. Charts from TradingView.