Chainlink has been striving to get momentum over the past couple of days, with the continuous period of yielding within the altcoin market, generating far-reaching ripples that have impacted LINK.
The crypto is now fighting to endure beyond its $11.00 support level, and some analysts consider that it could be at risk of contemplating further losses if this level is broken.
That being stated while staring towards LINK’s BTC trading dynamic duo, the cryptocurrency’s parabolic trendline created during the past few years remains fully intact. A break below this, however, could mark the start of a new – and bearish – era for the cryptocurrency.
Where altcoins like Chainlink trend next should depend essentially on whether or not Ethereum can gain momentum in the near-term.
ETH has been firmly guiding the altcoin market, but it has been unable to match Bitcoin’s momentum – which has led it to drift lower throughout the past few days.
Bitcoin and ETH have broken their correlation to one another, which means that Bitcoin’s price action in the near-term will do little to provide insight into that of altcoins like Chainlink.
Chainlink Struggles to Find Support as Selling Pressure Ramps Up
Prior to the tangible decline seen by altcoins over the past couple of days, Chainlink was flashing some signs of strength as its price climbed above $12.00
It has since broken below this level and is now at risk of also breaking below $11.00.
At the time of writing, Chainlink is trading down just over 2% at its current price of $11.00. This is about the price at which it has been trading throughout the past few days and weeks.
If it breaks below $11.00, it could see a capitulatory decline driven by panic selling.
Analyst: LINK Defends Parabolic Trendline, But Risk of Downside Remains
While giving his thoughts on where the aggregated market might trend in the near-term, one analyst explained that its multi-year parabola against its Bitcoin trading pair is still intact.
The very analyst also said that it does seem to be entering a corrective phase on a lower time frame, which could mean that some downside is imminent.
“LINK Parabola still intact. Macro structure is bullish until proven otherwise. Ltf structure seems corrective,” he stated while denoting to the below chart.
The approaching few days should present investors with more vital insights into where altcoins like Chainlink will trend in the near-term. Any additional Ethereum downside could place some severe pressure on LINK.