Chainlink has been caught within a prolonged consolidation phase during the past weeks, with the cryptoc largely trading between $12.00 and $12.70. Chinlink analysis shows that LINK isflashing some warning signs struggling to break resistance.
This has done little to offer insights into its near-term outlook, as its bulls are still reeling from the damage done to its market structure following the $20.00 rejection.
Chainlink analysis shows that where it trends next depends on its final reaction to a key resistance level that its price is fast approaching.
One expert is noting that he expects to see a rejection at this level, which could spark a sharp selloff that sends it reeling significantly lower in the days and weeks ahead.
He is specifically targeting a move towards its macro range lows of $10.00 that have been tapped on a few brief occasions during the past few weeks.
If this decline happens, it could come about due to weakness seen among the aggregated market.
Chainlink consolidates as crypto market expresses strength
Right now, Chainlink is trading up just under 1% at its current price of $12.56. This is approximately the price at which it has been trading throughout the past days, with it struggling to break into the $13.00 region.
The recent trading range between $12.00 and $13.00 that it has been caught within was first formed earlier this week when LINK ran to highs of $13.20 before seeing a rejection.
This movement came about in tandem with Bitcoin’s push to $10,500 and Ethereum’s rally to $380.
While Chainlink remains well below its recent highs, Bitcoin and Ethereum are both currently in the process of testing their respective resistance levels. Ethereum has even been able to surmount $380 as its bulls express significant strength.
Analyst: LINK is Flashing Some Warning Signs Struggling to Break Resistance
Speaking about Chainlink’s current technical outlook, one analyst said that chainlink analysis shows a few mounting signs of weakness.
He notes that this weakness could be invalidated with a firm break above $13,200.
How Chainlink trends in the coming few days and weeks may depend on whether or not BTC and ETH can maintain their present strength.