Altcoins such as Chainlink took a substantial beating over the past three days, plunging dozens of percent from their recent highs as Bitcoin and Ethereum plunged lower. At the same time, some altcoins remain near their lows as Chainlink price has undergone a strong bounce that has brought the cryptocurrency 25% higher in the past 24 hours. Analysts, though, are divided over what comes next for Chainlink.
Chainlink price rebounds from daily lows as bulls attempt to form the long-term bottom
Santiment, a blockchain analytics firm, is optimistic about Chainlink’s prospects. The company shared the chart below before the ongoing recovery, noting that LINK’s 30-day MVRV suggests there is an “opportunity to buy low.”
Some think that a correction is more likely, though. Michael Van De Poppe, a crypto trader, and writer, recently shared the chart below, suggesting that the asset will top around $13-14, then correct back towards $10:
Point of interest two from a while ago got hit.
Also, a nice bullish divergence got there as well and one of the strongest bouncers in previous days.
An HL construction around $10-10.50 would definitely trigger a long for me towards $14.50. pic.twitter.com/CLVmdHOaKH
— Crypto Michaël (@CryptoMichNL) September 6, 2020
At press time, Chainlink is trading up over 18% at its current price of $12.48. This marks a massive rebound from recent lows of $9.30 that was set earlier today when buyers stepped up and took control over its short-term trend.
The decline to these lows was fleeting, however, with buyers quickly stepping up and propelling it to highs of nearly $13.00 earlier today.
In the time since the cryptocurrency has been caught within a bout of sideways trading between $11.70 and $12.30. Despite the strength of today’s upswing, it is important to note that Chainlink’s channel of moving averages suggests that the cryptocurrency could decline towards $6.00.
Analyst Cantering Clar explained that Chainlink might be on the cusp of seeing significantly further downside in the near-term. He is setting his sights on the move to $5.00, explaining that he is confident that this downside movement will come to fruition in the near-term.
He stated:
“You hate to see it. But I am confident in it. Dread it. Run from it. Destiny still arrives all the same.”
You hate to see it. But I am confident in it.
“Dread it. Run from it. Destiny still arrives all the same.”$LINK pic.twitter.com/btn4EoY9jy
— Cantering Clark (@CanteringClark) September 5, 2020
How Chainlink trends in the coming few days and weeks should depend somewhat on whether or not Bitcoin and other major altcoins can continue pushing higher.
You can see the LINK price here.
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