Chainlink’s price action has been pretty brutal lately, as investors faced unusual selling pressure attempts when they began to abandon ship.
The mass migration of capital from the cryptocurrency has caused its price to drop to $ 7.80 from the $ 20 highs reached just a few weeks ago. According to Cole Petersen of News BTC, this is a significant drop and indicates that the macro market structure of the altcoin, which was previously on the rise, is beginning to deteriorate.
It’s important to note that LINK has seen similar parabolic advances and disadvantages in the past, but it usually takes some time before it can continue the bullish trend. One trader believes the cryptocurrency is oversold at its current price level and presents a chart showing that Chainlink is currently reaching a critical support level that can be followed with some significant increases in the coming days and weeks.
Chainlink Witnesses More Weaknesses
Chainlink was trading at $ 8.33 at the time of writing. This marks a notable decline from the daily highs of $ 9 set yesterday. Crypto has been facing relentless selling pressure since its price surged to $ 20. The parabolic rise to these peaks was positive and led many analysts to expect it to get even better. However, the selling pressure on the token became enormous after entering this price zone, and LINK has been in decline ever since.
One trend to be considered in the short term is the growing open interest for Chainlink on various futures platforms. This could indicate that a big move is coming.
A Strong Return Can Be Made
Talking about the cryptocurrency’s short-term outlook, an analyst explained that Chainlink is approaching a crucial support level that could trigger a bounce. This support exists around $ 8.00 and its upside target appears to be around $ 15.20.
It seems that Chainlink’s current price action is a bit separate from that of the crypto market. Therefore, where the next trend will be may not depend on Bitcoin and other major altcoins.