Chainlink has been closely tracking Ethereum’s price action as of late, with investors trading altcoins like LINK largely based on the movements seen by ETH.
This has made ETH essentially a benchmark index for altcoins, with its overnight plunge following an attempted rally yesterday striking a blow to many alts – including LINK.
Despite this, Chainlink’s bull case remains incredibly strong regardless of where ETH trends in the near-term.
It is currently trading just above a strong base of support that has been holding strong throughout the past week.
If buyers continue defending against a break below this price region, it could see an even stronger rally than the one posted yesterday.
One analyst is now noting that a move towards the upper-$13.00 region could be right around the corner, saying that the token’s technical strength has been growing over the past few days and weeks.
This rally would mark a serious breakout and potentially place a move back to its all-time highs of $20.00 back on the table.
Chainlink Reaches Key Support Level as Market Sells Off
At the time of writing, Chainlink is trading down over 5% at its current price of $10.90. This marks a notable decline from its daily highs of $11.70 that were set yesterday afternoon in tandem with Ethereum’s rally to $404.
The sharp decline seen by Bitcoin that sent it to the lower-$13,000 region created headwinds that proved to be too strong for altcoins to resistance, causing them to lose the gains seen yesterday.
Until Ethereum can rebound once again, there’s a strong possibility that LINK will continue drifting lower and potentially break below its key support within the mid-$10.00 region.
LINK Could Soon Rally Towards $14.00, Claims Analyst
While sharing his thoughts on Chainlink’s price action, one analyst explained that the strong support below where it is currently trading indicates that it may soon see a sharp rise that sends it towards $14.00.
He is specifically targeting a move to $13.60.
“LINK – 3rd time’s the charm? I believe it’s mathematically impossible for my third long to not reach my target of $13.60s. Previous two longs were stopped at entry/slightly above…”
Image Courtesy of UB. Source: LINKUSD on TradingView.
Because the cryptocurrency is still trading above its key support in the upper-$10.00 region following the overnight decline, this trader’s thesis remains valid.
That said, it must begin pushing higher, or else bears could start building strength.
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