LINK Analyst Says Rally To $16.50 Is Likely If It Surpasses Key Level

LINK analyst says rally to $16.50 is possible if the altcoin manages to surpass a key level above $11.00 in the next few days. This level became a strong resistance for the asset as both bears and bulls have reached an impasse so let’s read more in our chainlink coin news.

Although Chainlink has a history of forming price trends that are independent of the rest of the market, it lost a little bit of independence over the past few weeks as it started moving in unison with Bitcoin. The LINK analyst says that the coin is trading 50% from its recent highs formed a month ago. Despite the intensity of the downward trend seen after the rejection of this highs, the cryptocurrency was entering what seems to be an accumulation phase which shows that the base of support is forming at $10 and could act as a launchpad in the upcoming few weeks. The trader even expects massive upsides in the upcoming weeks.

He noted that LINK is nearing the apex of a pennant formed in the time after the decline from $20. The trader also believes that a move above $16 is possible in the near-term. At the time of writing, Chainlink was trading up just under 3% at a current price of $10.96 which was around the same time that it was over the past few days. Until it can gain stronger momentum which will lift it past the price level, the near-term outlook remains unclear. If this level is broken above and confirmed as a support level, the cryptocurrency could be in for some serious upsides. Because of the close relation to Bitcoin, the next trend could depend on the number one cryptocurrency entirely.

While sharing his thoughts on where the altcoin trend in the near-term will be set, one analyst said that he is expecting to see another move up to $16. He pointed to the triangle pattern formed in the time following the decline from the $20.00 high as one technical factor that can play a huge role in the movement:

 “LINK – Starting to look very interesting. This is one of the few altcoins I’m currently in a swing trade for. Adding down to $9.85 if possible. As well as adding more size to the position on a break of Diagonal Resistance. Targets: $13.7 & $16.48… Clear invalidation.”

$LINK – Starting to look very interesting. This is one of the few altcoins I'm currently in a swing trade for.

Adding down to $9.85 if possible. As well as adding more size to the position on a break of Diagonal Resistance.

Targets: $13.7 & $16.48

Clear invalidation. pic.twitter.com/VIXnJtN9JJ

— UB (@CryptoUB) October 15, 2020

Unless Bitcoin sees a sharp downturn and brings LINK with it, the upcoming few months will favor the LINK bulls.