Chainlink has been closely tracking Ethereum’s price performance lately, with investors trading altcoins like LINK largely based on the movements observed by ETH.
This has essentially made ETH a benchmark index for altcoins, with its overnight slump after an attempted rally yesterday that dealt a blow to many alts – including LINK.
Even so, Chainlink’s bull case remains incredibly strong, regardless of where ETH moves up in the short term.
It is currently trading just above a strong support base that has held up well for the past week.
Should buyers continue to defend themselves against a break below this price region, the rally could be even stronger than that recorded yesterday.
Now, an analyst notes that a move towards the upper $ 13.00 region could be imminent and says the token’s technical strength has increased over the past few days and weeks.
This rally would mark a serious breakout and potentially bring back a return to their all-time highs of $ 20.00.
Chainlink reaches critical levels of support when the market sells out
At the time of writing, Chainlink is trading more than 5% at its current price of $ 10.90. This marks a remarkable drop from its daily highs of $ 11.70, which was hit yesterday afternoon along with Ethereum’s rally to $ 404.
Bitcoin’s sharp decline that drove it into the lower $ 13,000 region caused headwinds that proved too strong for altcoins to resist, causing them to lose yesterday’s profits.
Until Ethereum can bounce back, there is a big possibility that LINK will continue to drift down and possibly fall below its key support in the mid-range of $ 10.00.
LINK could bounce towards $ 14.00 soon, claims analyst
While sharing his thoughts on Chainlink’s price action, one analyst stated that the strong support below where it is currently trading suggests that there could be a sharp spike soon, taking it towards $ 14.00.
Specifically, it is targeting a rise to $ 13.60.
“LINK – the third time is the stimulus? I believe there is mathematically impossible that my third long won’t hit my $ 13.60 goal. The previous two longs were stopped at the entry / a little above … “
Image courtesy of UB. Source: LINKUSD on TradingView.
With the cryptocurrency still trading above its key support in the upper $ 10.00 area after falling overnight, this trader’s thesis remains valid.
That said, it has to start pushing up, otherwise bears might start building strength.
Featured image from Unsplash. TradingView charts.
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