Macro uncertainty within the global markets has had a trickle-down effect, causing Bitcoin to see consolidation and weakness, which has, in turn, led Chainlink and other altcoins to see similar price action.
While looking towards LINK’s recent price action, the cryptocurrency has been caught within a trading range between $11.20 and $13.20, with these two levels being visited and respected on multiple occasions throughout the past few days.
One analyst is now noting that where the entire market trends in the near-term will likely depend on Bitcoin’s reaction to its range boundaries at $10,000 and $10,500.
This could influence Chainlink, helping the crypto to either smash above its $13.20 resistance or plunge below $11.20.
One analyst is noting that he believes it is likely that LINK sees further near-term upside.
He is specifically looking towards the consistent impulses and corrections that it has formed, noting that these are typically followed by strong upside movements.
Chainlink Shows Signs of Weakness as Consolidation Phase Persists
At the time of writing, Chainlink is trading down just over 1% at its current price of $12.50. This is around the price at which it has been trading throughout the past few days.
The crypto’s daily price action has been strikingly similar to that seen by both Bitcoin and Ethereum, although it is important to note that its rebound from its early-morning lows of $12.00 has been more intense than the rebounds seen by BTC and ETH.
Where it trends next in the coming few days and weeks will likely depend, in large part, on where the aggregated crypto market heads.
LINK has been largely caught within a consolidation phase throughout the past few weeks, with its momentum taking a major hit following the rejection it posted at $20.00 just a few weeks ago.
Analyst: LINK Poised to Post a Notable Upswing as Market Structure Shapes Up
While speaking about Chainlink’s near-term outlook, one prominent analyst explained that he is eyeing a major upside move.
He specifically points to previous consolidation patterns seen by LINK that are strikingly similar to this one, with each one being followed by a continuation of its uptrend.
“LINK is very clean with regard to how impulses and corrections are painted. It has remained pretty consistent thus far, I don’t expect much to change. Looks like it is just setting up for another move up.”
Image Courtesy of Cantering Clark. Chart via TradingView.
How Bitcoin and Ethereum ultimately resolve their current bouts of sideways trading should offer significant guidance to smaller altcoins like Chainlink.
Featured image from Unsplash. Charts from TradingView.