Chainlink has been flashing signs of immense strength throughout the past few days, rebounding from its recent lows alongside Ethereum and the aggregated DeFi sector.
Most of the cryptocurrencies associated with decentralized finance have posted large gains throughout the past couple of days, primarily coming about following Yearn.finance’s immense surge from its $7,500 lows that sent it as high as $18,000.
LINK is currently breaking above a resistance level that has been holding strong throughout the past couple of months.
If flipped into support, this level could help catapult the cryptocurrency back up to its all-time highs of $20.00.
One analyst is now noting that he is watching for a short-term move to over $13.00. He points to its ability to hold strong above all of its short-term time frames to justify this.
For it to see a sustained push higher, however, it will require that Ethereum and the DeFi sector remain strong as well, as any weakness across these assets could create a headwind that drives it lower.
Chainlink Gains Momentum as Market Trends Higher
At the time of writing, Chainlink is trading up nearly 8% at its current price of $12.70. This marks a massive surge from its recent lows of $9.70 that were set earlier this week.
It is also important to note that the cryptocurrency rebounded from a selloff seen yesterday, which sent its price down to lows of $11.50.
$12.00 was previously a strong resistance level that is now becoming support. The next key level that must be shattered is $13.00, as a break above this level could send it rocketing to fresh highs.
If a break above this level comes about in the days ahead, it will likely be due to sustained strength across Bitcoin, Ethereum, and the DeFi sector.
LINK to Soon Break $13.00, Claims Respected Analyst
To justify this sentiment, he stated that the defense of its lower time frame support levels will help boost it.
“Held support on low-time frames. Was a great place to ‘buy the dip’ for Chainlink. LINK wants $13+.”
Image Courtesy of Josh Rager. Source: LINKUSD on TradingView.
The coming few days and weeks should provide some serious insight into the aggregated altcoin market.
Featured image from Unsplash. Charts from TradingView.