Despite being one of the most bullish cryptocurrencies from a macro-perspective, Chainlink has seen an intense decline today that has led it to plummet by over 6%.
Today’s downturn marks an extension of that which was first incurred a couple of days ago when LINK tapped highs of nearly $4.00. The strong resistance at this level did prove to be insurmountable and could help fuel further downside in the days ahead.
This comes as one analyst even sets an incredibly low target for the cryptocurrency, suggesting that it could decline as far as $1.00 due to a massive rising wedge pattern that has led it to a high-time-frame resistance region.
Chainlink Shows Signs of Weakness as Analysts Watch Reaction to Key Support
At the time of writing, Chainlink is trading down over 6% at its current price of $3.55, marking a notable decline from daily highs of $3.80 that were set yesterday.
Over a weekly period, the cryptocurrency is showing even greater signs of bearishness, as it has declined from highs of nearly $4.00 that were set just two days ago.
The drop from these highs has led it to severely underperform Bitcoin, as the benchmark crypto is currently trading just a hair below its weekly highs of $7,800.
One popular crypto analyst on Twitter explained that it could soon fall significantly further as it begins pushing below its near-term support.
This downtrend could lead it as low as $2.90 against its USD trading pair, and as low as 40k sats against its BTC trading pair – a regression from its current BTC price of 46k sats.
“LINK: On BTC pair -> broke south, which is not bad after such a move. Levels to hold; 46K Satoshi, holding & test 49K is likely. Losing -> 43 / 40K satoshis are next. On USDT pair -> need to hold $3.45-3.50, otherwise $2.90 is likely,” the analyst noted.
Could LINK be Poised to Crater to $1.00? This Analyst Thinks So
Another popular analyst recently offered a chart showing a highly bearish path forward for the cryptocurrency, setting a mid-term target at $1.00.
As seen on the above chart, it does appear that Chainlink is currently trading within a rising wedge that leads it into a high-time-frame resistance zone. A rejection here could be dire, potentially sparking a mid-term downtrend.
This trend could be confirmed if the crypto fails to surmount the resistance within the lower-$4.00 region.
Featured image from Unplash.