Chainlink has been forming what appears to be a strong base of support within the mid-$13.00 region, as each dip here has resulted in it seeing a strong rebound.
This is leading analysts to note that upside may be imminent, as the multiple strong reactions to this level throughout the past several days is a positive development for the cryptocurrency’s short-term technical strength.
One trader is noting that LINK does still face heavy resistance around $16.00, which may result in it forming a trading range between roughly $14 and $16 in the days and weeks ahead.
Another trader is offering a more optimistic outlook on the cryptocurrency, explaining that although it does face some resistance, he expects the strong support just below its current price to act as a launchpad that sends Chainlink up towards $19.00.
This would allow it to erase nearly all of the losses that have come about as a result of its recent weakness.
In order for this possibility to come to fruition, LINK must continue holding above $13.50.
Chainlink Starts Forming Trading Range as Bulls Defend Mid-$13.00 Region
At the time of writing, Chainlink is trading up nearly 4% at its current price of $14.60. This is around the price at which it has been trading throughout the past few days.
It has dipped as low as $13.50 on a few occasions throughout the past week, but each break below $14.00 has proven to be highly fleeting and followed by an immediate rebound.
This is leading one analyst to that a trading range may be forming, with the support being the lower boundary and Chainlink’s near-term resistance at $16.00 being the upper boundary.
“$16 was a clear resistance zone as discussed a few days ago. Looking for a scenario like this as we’re constructing a range here,” he said while pointing to the range marked on the below chart.
Image Courtesy of Crypto Michaël. Chart via .
Here’s How High LINK May Rally if Bulls Defend $13.50
Another analyst that he could see Chainlink pushing up towards $19.00 in the near-term, but this strength would be invalidated if it breaks below $13.50.
“If we lose the low at $13.50 before taking the first swing high denoted with the ‘X’, it’s likely we are going to see one more leg down as a ‘wash out’ before we get this leg up I was anticipating. Consider $13.50 the invalidation point for this idea (in the short term),” he explained.
Image Courtesy of Credible Crypto. Chart via .
As seen in the above chart, the upside target this analyst is watching for exists in the $19.00 region, which – if it were to be reached – would mark a nearly full erasure of Chainlink’s recent losses.
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