Cryptocurrency analysts are split on the potential next price movement for Chainlink’s LINK token over the coming days and weeks. While some are calling for further downside after a breakdown from key support, others are eyeing a potential recovery back towards the top of its recent trading range. This disagreement suggests LINK could see significant volatility with a potential swing of around 15% in either direction.
Breakdown Calls for More Downside
Well-known crypto analyst Rekt Capital highlighted in a recent tweet how LINK has breached several key support levels that could now turn into resistance on any bounce. As he explains: “LINK Confirmed the breakdown from the Rising Wedge. Now potentially in the process of a breakdown from red demand area. Daily Close below red has kickstarted the breakdown process. Rejection from here would flip red box bottom into new resistance.”
Rekt Capital’s analysis shows LINK trading below what was previously a demand zone between $13 and $15. With LINK closing decisively below this area, he sees scope for lower levels as sellers take control. Flipping the old support into new overhead resistance could lead to a drop of around 15% from current prices near $13 down towards the $11 handle based on his chart.
Bounce Towards Top of Recent Range
Meanwhile, fellow analyst Ali is identifying an upside opportunity for LINK in the near-term based on positive momentum indicators. As Ali details: “The TD Sequential presents a buy signal on the 12-hour chart as LINK trades around the lower boundary of a parallel channel. If validated, LINK could rebound toward $15.2 or $17.3!”
The technical indicator Ali references is flashing an early sign of an impending trend reversal after the recent selloff, signaling scope for a bounce. With LINK appearing oversold around the bottom of its trading range, Ali sees potential for a move back up towards $15-17. That would represent an increase of over 15% from the current price level.
So while analysts attempt to predict LINK’s next move following the breakdown, the divided opinions point to elevated uncertainty and volatility over the short-term. As Rekt Capital explains, “rejection from here would flip red box bottom into new resistance.” But Ali meanwhile sees signs of a pending recovery fueled by positive momentum divergence. With technicals currently mixed, LINK could still swing either way by around 15% in the coming days until it establishes a clearer directional bias over the intermediate-term.
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