LINK formed classic reversal pattern after the recent capitulation from the multi-week downtrend. This came in the form of a sharp decline which led the price reeling from the highs of $20.00 to lows of $7.00 before finding a strong support level as we are reading more in the latest chainlink coin news.
As LINK formed classic reversal pattern, the lackluster price action also struck a serious blow to the technical outlooks but the rebound from the overnight lows could still make a long-term bottom. Since hitting the lower $7.00 region, LINK’s price was able to climb up to the highs of over $9.00. because of the intensity of the move, one analyst who was previously forecasting the capitulatory drop now believes that Chainlink could be forming a long-term reversal.
If this is the case, then it could soon be able to start afresh uptrend which will lead it back to the previous highs. Because this cryptocurrency tends to trade independently from the aggregated market, it could rebound regardless of how BTC and other assets are trending. At the time of writing, Bitcoin is trading under 20% at the $9.10 level which marks a huge climb from the recent lows of $7.40 which were set at the bottom of the recent selloff. These lows came in the form of a sudden decline as LINK previously consolidated at $8.50 before starting a massive inflow of selling pressure, causing the price to drop.
These lows were visited on two occasions right when the bulls were able to take control and capitulate to the current price. its strength is showing some signs of slowing down which only outlines how oversold it was earlier today. While speaking about the reaction to the $7.40 level, one analyst was closely tracking the Chainlink downtrend explained that it does appear as a trend reversal is about to happen:
“I always appreciate a bounce – given the chance – to get out at breakeven when your setup failed and price started [moving] around where you did not want it to. That said, this looks good for a reversal…”
If Chainlink can sustain the current momentum, the token could be in a good position to see significantly further upsides in the upcoming days and weeks.
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