Chainlink Rallies Higher as Analysts Expect Further Mid-Term Upside
Chainlink has seen one of the strongest rebounds from its recent lows across the aggregated altcoin market, with its price rocketing higher as investors begin rotating capital into “risk-on” assets as Bitcoin and Ethereum show signs of strength.
Its rebound is showing few signs of slowing down, and a move back up to its all-time highs could be on the table if the wider crypto market continues showing signs of strength.
One analyst is now pointing towards a diagonal resistance level that has been formed over the past few days, noting that a break above this level could spark the next leg higher.
He also notes that this recent momentum stems from a break above the upper boundary of a triangle formation that it had previously been caught within over a mid-term time frame.
The coming few days and weeks could provide it with further momentum, potentially sparking a sharp upswing if Bitcoin and Ethereum continue climbing higher.
Chainlink Rallies as Broader Crypto Market Shows Signs of Strength
At the time of writing, Chainlink is trading up just under 6% at its current price of $12.85.
This marks a massive surge from where it was trading just over a week ago when bears attempted to spark a selloff that sent it to lows of $9.60.
Where it trends in the short-term could have some serious implications for its macro trend, as a push higher from here could mark the start of its next parabolic move that sends it rocketing towards, or even past, its previous all-time highs of $20.00.
This move will be bolstered if the wider market remains strong, with BTC and ETH’s ongoing uptrends leading investors to rotate more capital into high beta assets like Chainlink.
Analyst: LINK Likely to Push Higher as Technical Strength Mounts
While sharing his thoughts on Chainlink’s current technical outlook, one trader observed that it is currently trading just below a diagonal resistance level that it is attempting to break.
If broken, he believes that this could spark a move that sends it rocketing significantly higher in the days ahead.
“LINK – Key S&R flip holding as Support over the last few hours. Slow bleed/chop & Diagonal resistance on the h1. When the diag breaks I’m expecting another leg up. The reaction at the EQ will be very important.”
Image Courtesy of UB. Source: LINKUSD on TradingView.
The coming few days should prove to be pivotal for major altcoins like Chainlink.
Featured image from Unsplash. Charts from TradingView.