Thursday, January 7, 2021

Chainlink Explodes Higher as Bulls Shatter Key Resistance Level; What’s Next



  • Chainlink has been lagging behind Bitcoin and the rest of the market throughout the past few weeks

  • This trend is coming to an end, however, as bulls have stepped up and propelled the cryptocurrency significantly higher today

  • It still has a way to go before it sets all-time highs, but its current momentum does seem to indicate that serious upside could be imminent in the short-term

  • One trader spoke about its technical outlook in a recent tweet, explaining that it was just able to break above a multi-month consolidation range that it had been caught within

  • He notes that this may allow for it to see some serious upside in the days and weeks ahead

Chainlink has been lagging behind the entire crypto market throughout the past few weeks, with it largely hovering within the lower-$10.00 region while many of its counterparts rallied.


This consolidation appears to have come to a firm end today, with bulls taking full control of its price action as they send it up towards its all-time highs.


It still has room to rally before it reaches the $20.00 region, which has long proven to be a resistance zone for the cryptocurrency. A firm break above could allow it to enter price discovery mode, sending it to new highs.


Chainlink Explodes Higher Following Consolidation Phase


At the time of writing, Chainlink is trading up over 15% at its current price of $16.00. This marks a massive surge from its recent lows of $8.00 that were set in December when the entire market saw a flash crash.


From here, its price rallied until it reached the $14.00 region, which is around the time it began facing some intense resistance that slowed its growth.


The break above this level was significant and sent it flying up to its current price levels. Bulls are now trying to flip $17.00 as support.


LINK Breaks Key Trading Range as Analysts Eye Upside


One trader explained in a recent tweet that the recent breakout rally allowed Chainlink to shatter a multi-month trading range.


He notes that this could mean that a move up to its all-time highs of roughly $20.00 is imminent.



“LINK: Broke out of a long consolidation range. Retesting the P.O.B is where most traders will look to enter on a retest and/or add to positions with confirmation,” he said while pointing to the below chart.



Chainlink LINK


Image Courtesy of Pentoshi. Source: BTCUSD on TradingView.

The coming few days should offer significant insights into where Chainlink and other altcoins will trend next.


Featured image from Unsplash.
Charts from TradingView.





Source newsbtc.com

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