Chainlink faces a plunge to $7.50 since its price action was following the one of Ethereum as of late and is trying to break free of this correlation in order to gain some independent momentum so let’s check up on the latest Chainlink coin news.
The wider crypto market continues to increase with other altcoins surging as BTC consolidates around $18,000. It seems that there’s an ongoing rotation of capital from BTC and even ETH into smaller tokens that have a huge risk as well as higher upside potential. This was quite beneficial for Chainlink with the token surging to reach a crucial resistance level as analysts predict there will be a near-term upside. How will the trend shift in the near-term will depend on whether or not it can break above the $13.80 in the near-term and change this level into a support one. One trader is noting that breaking above it is required to turn bullish on the cryptocurrency stating that the sustained bout of trading below the level will lead to a potential further downside.
As for how far-reaching the potential decline could be, the analyst claims that Chainlink faces a plunge to as low as $7.50 if it doesn’t break the key resistance level. For this level to come about, it will require a strong downturn across the entire market. This could not be a real possibility given Bitcoin’s strength at present time. At the time of writing, Chainlink is trading up just under 1% with a price of $13.70. This is around the price at which was trading over the past day or so with the resistance at $13.80 proving to be important.
Breaking about this level and holding it above it for an extended period of time is important for LINK in order for it to receive significant momentum in the near-term. One trader believes that chainlink will be at risk of seeing more downsides if bulls are unable to break the $13.80. the analyst is watching for a sharp move towards $7.50 if the market turns lower as well:
“LINK: Still no breakout above this resistance zone. The S/R flip I find required for further bullishness. Otherwise I’d be looking at $10 and $7.50.”
If Bitcoin and Ethereum drop lower, Chainlink will do so too along with other major altcoins that face potential near-term selloff.
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