Traders turn short on LINK as the asset was caught in a prolonged consolidation phase over the past few weeks and posted huge warning signs as we are reading in our chainlink cryptocurrency news.
LINK was trading between $12.00 and $12.70 so the consolidation has done little to offer insights into the near-term outlook and the bulls are still reeling from the recent damage done to the market structure after the $20.00 level rejection. The analysts are noting that where it trends next will depend on the ultimate reaction to the key resistance level where the price is headed. One trader even noted that he is expecting to see a huge rejection at this level which could start a sharp sell-off which will send it reeling lower in the upcoming days and weeks ahead.
He is also targeting another move to the macro range lows of $10.00 which have been tapped on a few occasions over the past few weeks. If the decline takes place, it will come about because of the weakness seen among the aggregated market. At the time of writing, chainlink started trading up just under 1% with a current price of $12.56 which is around the price at which it was trading over the past few days and weeks, having a hard time struggling into the $13.00 region.
The recent trading range of $12.00 and $13.00 which LINK was caught in was first formed at the start of the week when the asset hit highs of $13.20 before getting into a swift rejection. The movement came at the same time when Bitcoin pushed to $10,500 and ETH rallied to $380. While chainlink remains below the recent highs, BTC and ETH are both in the process of testing their own resistance levels. ETH was able to surpass the $380 level as the bulls showed strength.
While speaking about the technical outlook for Chainlink, one analyst noted that traders turn short on LINK as there are signs of weakness showing up. He said that this weakness can be invalidated with a break above $13,200.
“LINK / USD: Honestly not really looking to great right now, currently not looking like the best time to take a long position at resistance but if PA can flip $13.2 I would be long… Maybe I should just listen to the marines and degen long?”
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