Chainlink is currently attempting to confirm $10.00 as a support level as it faces inflows of selling pressure that jeopardize its near-term outlook.
Despite the present weakness it is facing, a confirmation of this level as support would be incredibly bullish, as it would mark a mid-term support-resistance flip that potentially kicks off the next leg of its recovery.
On the flipside, a break below this level would be grim, and potentially cause the cryptocurrency to plunge down towards its recent $7.50 lows that were set just a handful of days ago.
While speaking about Chainlink’s present market structure, one analyst explained that although it is not “super bullish” at the present moment, it does appear to be positioned to see some strong upside.
He specifically points to the aforementioned support-resistance flip, explaining that a confirmation of $10.00 as support could be enough to boost LINK’s price towards $12.00 – marking a 20% rise from where it is currently trading at.
Chainlink Faces Intense Selling Pressure as Bulls Guard $10.00
At the time of writing, Chainlink is trading down just under 2% at its current price of $10.15. Bears are aggressively trying to force it lower, but buyers have posted a strong defense of this price level.
This dip came about rather unexpectedly today, as LINK was previously showing signs of being stable within the upper-$10.00 region.
The instability within the aggregated crypto market contributed to this weakness, and may cause it to see further downside in the near-term.
Bitcoin, Ethereum, and most other major digital assets all tested their near-term support levels yesterday afternoon and have seen declining upwards momentum ever since.
This could place some pressure on Chainlink in the days and weeks ahead.
Here’s the Key Level LINK Must Continue Defending
While sharing his thoughts on Chainlink’s present market structure, one analyst explained that LINK bulls must confirm $10.00 as a support level. An ability to do so could lead it to see further upside in the days and weeks ahead.
“LINK / USD: Price action is looking pretty good if we can flip $10 into some support over the next 24/48 hours, could be a good chance that we can soon retest $12 as resistance… Not super bullish at the moment, still ground to cover.”
Image Courtesy of Cactus. Chart via TradingView.
Whether or not $10.00 continues to be defended by Chainlink bulls may depend largely on how the aggregated market trends in the near-term.
Featured image from Unsplash. Charts from TradingView.