Chainlink has seen some mixed price action in recent weeks, with the cryptocurrency’s price plunging as low as $10.00 and facing another rejection around $12.00.
This price action has primarily favored sellers, as the inability for it to make a sustained push off of its support around $10.00 seems to point to some underlying weakness amongst buyers. It may also suggest that the recent downtrend has done serious damage to its mid-term market structure.
That being said, the strong base of support it has been establishing throughout its recent price action may ultimately act as a springboard that helps propel LINK significantly higher.
One analyst, in particular, is setting his sights on a move up towards $13.50 in the near-term, explaining that its technical outlook is beginning to grow brighter as its downtrend stabilizes.
Chainlink Shows Signs of Slowing Its Descent as Support at $10.00 Holds Strong
At the time of writing, Chainlink is trading up marginally at its current price of $10.78. This is around the price at which it has been trading throughout the past few days.
Buyers have been ardently defending against a dip below the lower-$10.00 region, as this has been a historically strong support level for the crypto.
A sustained dip below here could throw Chainlink into a tailspin and lead it to see significantly further downside in the days and weeks ahead.
Where Chainlink trends in the near-term may be somewhat dependent on Bitcoin, Ethereum, and the rest of the cryptocurrency market, which are all currently caught within a bout of sideways trading.
If BTC or any other major cryptocurrencies plunge, it could create a headwind that forces Chainlink below the crucial $10.00 level.
Analyst: LINK Could Surge Towards $13.50 Due to Strong Support
One analyst, while speaking about Chainlink’s present technical outlook, explained that he believes the cryptocurrency could be poised to see a notable short-term rally.