Chainlink has been flashing some mixed signs to investors in recent weeks, with the cryptocurrency rallying as high as $18.00 earlier this week before plunging to lows of $15.00 earlier today.
Bulls are now attempting to stabilize it within the upper-$15.00 region, with the chances of it seeing further downside growing as it fails to post a sustained recovery from its overnight dip.
Buyers did, at one point, push it as high as $16.50 earlier this morning, but LINK met some resistance here that caused its price to slide back down towards its current price levels.
One trader is now pointing to a few factors that seem to indicate that further upside is imminent, referencing signs of macro strength while looking towards its multi-week price action.
Another analyst concurs with this notion, explaining that he is bullish on LINK so long as it continues trading above its high time frame support at $14.10.
At the time of writing, Chainlink is trading up just over 1% at its current price of $15.90.
This marks a notable upswing from daily lows of $15.00 that were set earlier this morning when bears attempted to gain control of the crypto’s mid-term trend.
The rebound from these lows was significant, however, and allowed the crypto to rally to $16.50 before it lost its momentum and slid down to lows of $15.70. It has been consolidating ever since.
Analysts are now noting that the cryptocurrency’s mid-term outlook remains bright despite this recent turbulence.
“LINK 4h update: beautiful breakout + retest of R1 followed by a decent pump. I am expecting a continuation soon once we break R2,” one trader explained while pointing to the below chart.
Image Courtesy of Silver Bullet. Chart via TradingView.
Some other factors seem to indicate upside is imminent for Chainlink, including its ability to maintain above its key near-term support at $14.00.
One analyst spoke about these factors in a tweet from yesterday, which all remain valid despite this morning’s dip and rebound.
“From our initial entry price is already in Valhalla, but will be adding some here for a scalp – why? – Above major resistance, now support – Giving signs of bouncing off the cloud – Downwards resistance, peaking through on shorter timeframes.”
Image Courtesy of Teddy. Chart via TradingView.
Where Chainlink trends in the near-term should offer some significant insight into the strength of its macro market structure.
Featured image from Unsplash. Charts from TradingView.