This Coin Saw Major Growth But Has Strange Downside Potential

Meet Chainlink (LINK). This coin saw a lot of surges in 2020 and has been one of the best performing cryptocurrencies in the coming altcoin news throughout both this year and the previous one (2019). The intense upwards momentum has shown many tempered signs of slowing down but the cryptocurrency still remains somewhat unclear as to whether or not the strong resistance it faced within the upper $4.00 region is enough to halt its strong macro-momentum.

Analysts are now noting that the lack of support that LINK has throughout the $3.00 region could spark a significant near-term retrace if the bulls lose their strength. One analyst even noted that a drop below $4.00 for this coin could lead it to drop sharply.

At the time of writing, LINK has retraced from its price of $4.24 and went to $4.11 again, trading just under 5% which still marks a slight clumb from the weekly lows of $3.89 that were set last Monday.

Currently, LINK is caught within a mid-term bout of sideways trading that was first sparked after the coin incurred a massive price decline from the weekly highs of $4.89 set last Wednesday just prior to the capitulatory sell-off which was seen by the aggregated market.

Yesterday, this coin saw a reversal which it had been caught within against its BTC trading pair, opening the gates for some further downside. According to the prominent crypto analyst named Bagsy, the Chainlink news show this breakdown:

“LINK update: Price broke down from pennant but hasn’t broken HTF structure; I’d look at area 1 for a bounce play back into the range. If we begin closing candles beneath the range low, no bueno. Area 2 would be for catching deeper wicks.”

$LINK update:

Price broke down from pennant but hasn't broken HTF structure; I'd look at area 1 for a bounce play back into the range. If we begin closing candles beneath the range low, no bueno. Area 2 would be for catching deeper wicks. pic.twitter.com/Ouhja6iE7k

— Bagsy (@imBagsy) February 22, 2020

Another prominent crypto analyst named Josh Rager spoke about how this coin saw a major reversal. He explained that the cryptocurrency is right now in price discovery and that a drop into the $3.00 region could lead it to plummet towards $2.80 before it finds any support.

$LINK

Same as Tezos in price discovery can continue to pump but it if falls, $LINK has limited support until under $3

I'd certainly start getting exposure by $2.84 and for some reason, if price gets to $2.16, I'd buy more in that area

Under $2 is like Christmas 2019 🙂 pic.twitter.com/oHAOjWRgg8

— Josh Rager 📈 (@Josh_Rager) February 23, 2020

Anyways, despite all of this, the Chainlink LINK token is one of the best performing coins. If we forget about its loss potential, it is highly possible that it will continue extending its upwards momentum if the aggregated crypto market remains bullish.