Chainlink Poised for Upside After Narrowly Avoiding an Invalidation of Its Uptrend
Chainlink’s immensely bullish uptrend came incredibly close to being invalidated last week during the market-wide downturn, but bulls have since been able to propel LINK higher and bolster its market structure.
One top trader is now noting that he is anticipating the crypto to see near-term upside.
This possibility could be further enhanced by bull’s ongoing attempt to push Bitcoin back into the $7,000 region, which could create an upwards tailwind that allows altcoins like LINK to incur serious momentum.
Chainlink Shows Signs of Bullishness After Narrowly Avoiding Invalidation
At the time of writing, Chainlink is trading down just under 3% at its current price of $3.51. The crypto is currently underperforming Bitcoin by nearly 2% and has not yet caught any notable momentum as a result of BTC’s push higher.
LINK has developed a tendency throughout the past few weeks of outperforming Bitcoin during uptrends and underperforming it during downtrends, which means that it’s short-term price action could be largely dependent on that of Bitcoin.
Per a report from NewsBTC last week, Chainlink was close to invalidating its recent uptrend when it moved towards the lower-$3.00 region on Wednesday in tandem with Bitcoin’s decline beneath $6,600.
As cited in the report, this plunge led analysts to grow cautious of being bullish on LINK.
“Breakout starting to lose strength – relatively close to invalidation,” one trader stated while referencing the chart seen below.
Image Courtesy of Teddy
It’s ability to put some significant distance between its current price and these lows has allowed it to invalidate this potential bearishness and bolster its market structure in the time since.
LINK Poised to Push Higher in the Coming Hours
In the near-term, analysts do seem to believe that Chainlink is poised to make another push higher.
One popular pseudonymous trader on Twitter recently updated a thread in which he detailed his plans to long LINK with a target within the $3.60 region, noting that he still expects it to push somewhat higher in the near-term if it can flip a key level.
“LINK Took 40% off and moved my stop to just under $3.51. Will re-add and compound if we flip this level.”
Image Courtesy of Loma
The level he is watching for LINK to flip into support exists at $3.56, although a failure for it to break above the resistance here could be enough to stop its rally from extending too much further.
Featured image from Unsplash.