The Chainlink LINK token is in the latest cryptocurrencies news today as it recently cleared the $4 level, which is a potential indicator for a new rally. According to many analysts the cryptocurrency needs to go above this level in order to spark a rally.
Although LINK is not trading in its best days now, it has been flashing some signs of weakness as it underperforms Bitcoin and the aggregated crypto market. Analysts are noting that the coin could be well positioned to see further upside in the days and weeks ahead as it inches up towards a key resistance level.
So, if buyers are able to get enough buying pressure to firmly shatter this resistance level, Chainlink LINK could soon find itself caught within an uptrend that leads it up to new all-time highs.
The Chainlink news also show that at the time of writing, the coin is trading up just over 1% at a current price of $4.07. However, this level needs to be sustained this time and Chainlink LINK needs to attract the bulls to rise further.
Over a weekly period, Chainlink is still trading down from its highs over $4.10. The Chainlink LINK token has largely been ranging sideways throughout May as it struggles to garner any decisive momentum in either direction.
The trading range has been established between roughly $3.50 and $4.20 and it is very likely that a range like this will persist until Bitcoin is able to break its consolidation channel within the lower $9,000 region.
One cryptocurrency analyst Nik Patel recently spoke about Chainlink LINK and its multi-month trading range – noting that it is quite larger than this with a lower boundary at $1.55 and an upper one at its all-time highs of $5. Patel also noted that he does believe the cryptocurrency will soon see a fresh rally but it must first surmount the $4.30 levels.
“Resistance overhead is at $4.30 and if price was able to break above this I would expect to see a test of all-time highs fairly swiftly. Invalidation for longs would be a clean break below $3.40,” the analyst explained.
All in all, Chainlink is currently underperforming Bitcoin but that can change soon – and the trend could come to a swift end. We still stay on the fact that LINK is doing good and is among the best performing coins this year.
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