Chainlink, despite being the darling of the crypto market since 2017 for altcoin traders, is now facing some immense turbulence – the likes of which haven’t been seen in years.
The cryptocurrency gained notoriety for its ability to consistently set fresh highs while the rest of the market was reeling lower in the wake of the early-2018 crash.
This strength ultimately led it to reach all-time highs of $20.00 and secure a spot as the fifth largest digital asset by market cap.
After reaching these highs, however, its price began descending at a rapid pace, ultimately plunging down to lows of $7.50 that were set towards the end of last month.
Although its price has since recovered from these lows, it still has a long way to go before it is able to recapture its recent highs.
As such, there’s a possibility that it will see even further weakness before it finds enough buying pressure to reverse its downtrend and start posting a v-shaped recovery.
One analyst believes that it will break below $7.00 before it is able to find meaningful support.
Chainlink Stuck Below $10.00 as Selling Pressure Remains Persistent
At the time of writing, Chainlink is trading up just under 2% at its current price of $8.95. This marks a slight rebound from its recent lows of $8.40 that were set earlier this week.
This decline was short-lived, and the buying pressure in the mid-$8.00 region does appear to be significant.
As such, where the cryptocurrency trends next will likely depend mostly on its continued reaction to the buying support that exists here.
Any sustained decline below this level could open the gates for it to see even further losses in the days and weeks ahead.
Here’s How Low One Analyst Expects LINK to Drop
While sharing his thoughts on where Chainlink (LINK) might trend in the near-term, one analyst explained that he is watching for a move down towards its August low next, which sits below $7.00.
“LINK update: Want to see ‘July high’ cap the market. Looking for ‘August open’ and ‘August low’ as next downside targets.”
Image Courtesy of TraderSZ. Chart via TradingView.
How Chainlink trends in the coming few days should provide investors with serious insights into its mid-term outlook, which may depend somewhat on Bitcoin and the aggregated market.
Featured image from Unsplash. Charts from TradingView.