Chainlink has seen a massive price rise in recent times, surging to fresh all-time highs in July of 2019 concurrently with Bitcoin’s rise to its 2019 highs of $13,800. Although both cryptocurrencies have both retraced from these highs, LINK is still trading up significantly from its year-to-date lows.
Analysts are now noting that Chainlink may soon extend the momentum it incurred earlier this year, as its recent downtrend has sent it down to a key support level that may spark a bullish trend reversal.
Chainlink One of 2019’s Best Performing Cryptocurrencies
2019 proved to be a rocky year for the crypto markets, with Bitcoin and most major altcoins incurring some decent upwards momentum throughout the first half of the year before plummeting lower throughout the year’s latter months.
Although the recent downwards momentum incurred by Bitcoin has impacted most major altcoins, Chainlink has been able to incur price action independent of BTC.
At the time of writing, LINK is trading down nearly 6% at its current price of $2.10, with today’s decline marking an extension of the downwards momentum that was incurred in earlier this week after it touched highs of $2.30.
It is important to note that on a larger time frame, Chainlink has been caught in a downtrend since early-November when it hit highs of $3.20, which was just a hair below its all-time highs of just under $4.00.
In spite of the short-term downtrend that LINK is caught within, it is imperative to note that the crypto is currently trading up significantly from its 2019 lows of under $0.30.
Analyst: LINK May Be Gearing Up for Another Leg Up
Scott Melker, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Chainlink’s short-term downtrend may soon reverse, as it has now reached a key support level that is holding strong.
“$LINK / $BTC: Beautiful price action. You don’t need many lines to trade this coin. The huge move down over the past few weeks was perfect, and it’s now flipping new levels back to support on the way up,” he noted while pointing to the chart seen below.
Beautiful price action. You don't need many lines to trade this coin. The huge move down over the past few weeks was perfect, and it's now flipping new levels back to support on the way up. pic.twitter.com/WenTojsxG4
— The Wolf Of All Streets (@scottmelker) December 12, 2019
If this support continues to hold strong, it is possible that Chainlink will soon revisit its previously established all-time highs and possibly even surge past them.
Featured image from Shutterstock.