LINK’s violent rejection has just created a strong support level for the asset as we are reading more in the upcoming Chainlink news today.
Bitcoin was stealing the light from other altcoins in the past few hours with many smaller tokens dropping as BTC went past $9400. LINK is one example of a token that posted major losses in the past day as the latest price drop marks an extension of the downtrend which was been caught in the past few days. The bounce acquired at this level seems to be fleeting and it makes it unclear where the crypto might go next.
LINK’s violent rejection is now flashing some signs of weakness and the sellers are diving into the gains that the token posted in the past few weeks. After peaking at $8.60, the buyers were unable to maintain the momentum which was guided higher with LINK trading at a crucial support level in the $7.00. The support here has been tested by the bulls on multiple occasions as the first reacting here was quite strong but it was erased to bring the altcoin back to the same level. If the support falters, the cryptocurrency could find itself within the intense downtrend.
It seems that the zero-sum game between altcoins and Bitcoin and when one piece of the market rallies, it usually comes at the expense of the other. Bitcoin’s trading volume and liquidity were siphoned into the altcoin over the past few weeks which has been perpetuated in its bout of sideways trading. As the altcoins started cutting further into their gains, Bitcoin was able to break its trading range and is now within the $9400 showing high strength. Chainlink, on the other hand, was one of the best performing altcoins over 2019 and 2020 which rallied as high as $8.60 last week.
LINK has been struggling to gather any clear support ever since and is now trading at $7.30. It’s possible that Chainlink will post some major losses if it continues its downtrend and one analyst even said that the current support is extremely important and is likely the best one for “buying the dip.” He pointed out to a support region between $7.15 and $7.35:
“LINK – I think this is the best support for buying the dip, if you think we make another all time high this week.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post