Chainlink has seen mixed price action in recent weeks. Although its market structure remains firmly bullish over a mid-term and macro time frame, it has been expressing significant short-term bearishness that has not gone unnoticed.
Multiple analysts have noted that it could soon see a significant near-term decline that causes it to shed even more of its value, but bulls have been able to defend against any significant downside.
In the time since its capitulatory slide to lows of $12.00 last week, the cryptocurrency has been caught within a bout of sideways trading that has made it increasingly unclear as to which direction its price may trend in the near-term.
That being said, one analyst is noting that Chainlink is now testing a crucial multi-month trendline that has been guiding its price higher.
A defense of this trendline may provide it with some serious near-term momentum. This has led analysts to watch for a move up towards $18.00.
Chainlink Continues Consolidating Around $15 as It Undergoes Key Trendline Test
At the time of writing, Chainlink is trading up just under 1% at its current price of $15.25.
This is around the price at which it has been trading for the past several days, with bulls and bears largely reaching an impasse as it consolidates between $14.60 and $16.00.
This consolidation phase first began after bulls absorbed the rug-pull decline that sent the crypto’s price reeling down to lows of nearly $12.00 on some trading platforms.
The defense of this support was a positive sign, but analysts are noting that it is now sitting on top of a key trendline that has been guiding its uptrend throughout the past few weeks.
While speaking about this, one analyst explained that a defense of this trendline could easily lead the cryptocurrency up towards $18.00 in the near-term.
“LINK appears to have found support from the trendline. Target is now $18 due to the confirmed falling wedge.”
Image Courtesy of Tyler Coates. Chart via TradingView.
Here’s the Key Resistance That Could Spark the Next LINK Rally
Another analyst explained that he is also expecting Chainlink to see a move up towards $18.00 in the near-term, noting that a firm close above $16.00 today could be all that is needed to spark this movement.
“LINK: After a dip down sub $13, LINK has now bounced back. Rejecting off $16 the first time, but a retest and close above this level will lead to a test of $16.50s followed by a grind up over $17s…”
Image Courtesy of Josh Rager. Chart via TradingView.
Because Bitcoin is also showing some hints of strength today, this may be one factor that also helps send the crypto surging higher.
Featured image from Unsplash. Charts from TradingView.