Unless Chainlink price extends its slight momentum today, further downside is likely imminent
Chainlink price has been swirling in a swirl of volatility in recent weeks, with its price creating parabolic momentum before facing a stream of selling pressure that sent it down significantly. Even so, LINK is showing some signs of weakness at the moment, with buyers unable to sustain the momentum it generated last week.
Chainlink price consolidates after a strong rejection above $ 20
LINK faced a strong pullback, which has yet to lead to any recovery. This led a trader to note that the cryptocurrency has broken its previous bull market structure for the first time in a while.
Hence, Calmly traders are predicting Chainlink will see some notable short-term downsides, which could lead to as low as $ 10 in the coming weeks.
At the time of writing, Chainlink is trading just under 3% up at its current price of $ 16.6. These gains have come due to a strong bounce that it could post at $ 14 with buyers then building its support base at $ 15.
The many rallies it could post at this support level have allowed the cryptocurrency to avoid the market-wide slump seen today and post some slight gains. That being said, it is still trading significantly down from the more than $ 20 weekly high that was established just a few days ago.
The strong uptrend leading to these highs comes after Barstool Sports founder Dave Portnoy donated cryptocurrency to his more than 1 million followers, buying LINK and Bitcoin during a recent meeting with Winklevoss Twins.
Even though strength has been witnessed today, analysts still express caution when it comes to Chainlink’s short-term prospects.
Calmly noted in a recent tweet that the rejection and drop from the $ 20 high broke its market structure. Hence, he anticipates it to drop to one of the next support levels. They exist between $ 13 and $ 10.
He stated:
“Chainlink – First break in market structure in a long time. I wonder if it leads to the more significant downside, but here are the levels I’m looking at before coming back into the old range.”
$LINK / #ChainLink – First break in market structure in a long time. I wonder if it leads to more significant downside, but here are the levels I’m looking at before coming back into the old range pic.twitter.com/yk9pr9XmGK
— Calmly | full-time trader (@im_calmly) August 19, 2020
Unless LINK extends its slight gain today and starts navigating back to these highs, further declines are likely to occur.
Read more:
- The Analysis Shows That Chainlink Price Is Nearing A Top By Elliot Wave Standards
- Chainlink Price Is Up Another 13% So Far This Weekend, Hit A New All-Time High Of $20.13