The entire cryptocurrency market has seen some turbulence over the past 24-hours, with Bitcoin’s decline to lows $10,400 creating a headwind for the market. Despite its macro strength, Chainlink was not able to avoid the losses that came about as a result of this BTC movement.
Analysts are now noting that Chainlink is trading at a crucial near-term level that could have significant implications for its outlook.
One trader is particularly looking towards the price region between $12 and $13.50, noting that there is massive liquidity here that may slow its descent and allow it to climb significantly higher.
He is targeting a short-term movement up towards $16.00, noting that there is some resistance here that will likely slow its ascent and cause it to see some further range-bound trading.
Chainlink Plunges Alongside Bitcoin and Aggregated Crypto Market
At the time of writing, Chainlink is trading down over 10% at its current price of $13.30. This is around the price at which it has been trading throughout the past few hours, with buyers struggling to spark any strong upwards movement.
It is important to note that LINK has been slowly descending throughout the past week, plunging from highs of $18.00 to lows this morning of $12.90 that were hit for a brief moment.
A good portion of these losses came about independent of Bitcoin and the rest of the crypto market – which pushed higher throughout the past few days.
The decline the rest of the market saw today, however, appears to have just compounded the weakness that Chainlink has been seeing as of late.
This Liquidity Region Could Catapult LINK Up Towards $16.00
While speaking about the cryptocurrency’s near-term outlook, one trader explained that he believes the liquidity just below Chainlink’s current price could be enough to stop it from seeing any significant losses in the near-term.
He even notes that it could allow it to surge up towards $16.00.
“Chainlink: Back in the range lows here as we tap liquidity below the support levels. Bad? No. Would be expected to see a range-bound bounce towards $15.50-16.00.”
Image Courtesy of Crypto Michael. Chart from TradingView.
Bitcoin and Ethereum are currently guiding the entire cryptocurrency market, with ETH struggling to hold above $400 while BTC remains trapped below $11,000.
Whether or not these assets can find some stability and rebound will likely play a role in Chainlink’s short-term price action as well.
Featured image from Unsplash. Charts from TradingView.