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Chainlink has been caught in the throes of an insane uptrend over the past couple of years.
Due to a slew of announcements, integrations, and other pieces of good news regularly surrounding the project, the cryptocurrency has been able to defy the market-wide downtrend seen throughout 2019.
This extreme bullishness has carried over into 2020, with LINK now incurring parabolic momentum that allowed it to set fresh all-time highs yesterday.
In the short-term, its momentum is showing some signs of slowing as it begins facing heightened selling pressure.
Despite its immense strength, one analyst is now warning that a fractal pattern suggests downside is imminent.
He also notes that this potentially inbound dip won’t be for buying and that it could result in it seeing a strong downtrend that drags it lower in the weeks and months ahead.
Chainlink Set Fresh All-Time Highs of Nearly $18.00 Yesterday
At the time of writing, Chainlink is trading up marginally at its current price of $16.50.
Yesterday, LINK incurred another influx of buying pressure that boosted its price, sending it surging from lows of $12.20 towards $16.00.
After consolidating at this price region for an extended period, the crypto then incurred yet another massive surge in buying pressure that helped guide it to highs of nearly $18.00.
It was rejected at these highs and is now once again consolidating within the mid-$16.00 region.
There are a few key trends that have driven the parabolic growth this token has seen in recent times.
One such trend is the myriad of announcements surrounding integrations of the project’s oracle network.
From a technical perspective, some analysts have also pointed to the massive amount of short positions always opened by LINK as another factor that has provided bulls with fuel to propel it higher.
Some even refer to Chainlink as the “Tesla of crypto” due to it being driven higher by similar technical dynamics.
This Fractal Spells Trouble for LINK’s Near-Term Outlook
While speaking about the cryptocurrency, one analyst explained that a “Hyperwave fractal” suggests that Chainlink’s highs of just under $18.00 will mark a mid-term top.
He also notes that this means the region between $15 and $17.5 is for taking profits and not a “buy the dip” opportunity.
“LINK target is $17.5 which would appear to line up nicely with a top of Phase 4 in the Hyperwave fractal. Definitely not a buying opportunity, $15 – $17.5 is for taking profit,” he noted.
Image Courtesy of Tyler Coates. Chart via TradingView.
Because Chainlink isn’t too correlated to the aggregated cryptocurrency market, there’s a strong likelihood that where it trends next won’t be dependent on Bitcoin.
Featured image from Unsplash. Charts from TradingView.
