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For the First Time, Chainlink breaks its Bullish Market Structure

August 20, 2020

In recent weeks, Chainlink has been caught in the throes of intense volatility. Its price is incurring parabolic momentum before facing an arrival of selling pressure that sent it winding expressively lower.

This volatility has come about as talks of LINK’s growth heat up, with mainstream news outlets covering its ascent and prominent social media figures like Dave Portnoy shilling it to their followers.

As talks of LINK’s growth is heating up, this volatility has been coming up with mainstream news outlets covering its ascent and conspicuous social media figures like Dave Portnoy.

Notwithstanding this, LINK is displaying some signs of feebleness at the present moment, with consumers incapable of sustaining the momentum it experienced last week. As an outcome, the cryptocurrency has confronted a substantial review that has yet to result in any rebound type.

This has led one dealer to note that the cryptocurrency has wrecked its beforehand bullish market construction for the first time. As a product of this, the trader expects Chainlink to see some notable near-term disadvantage, which could lead it as low as $10.00 in the weeks onward.

Chainlink Merges Following Strong Rejection above $20.00

As of now, Chainlink is swapping up just fewer than 3% at its present price of $16.60. These advances have come about due to the secure ricochet it was able to post at $14.00, with buyers afterward building a base of support at $15.00.

The multiple recoils it was able to post at this sustenance have permitted the crypto to escape the market-wide decline seen nowadays and post some minor gains. It is still trading down meaningfully from its weekly ratings of over $20.00 that was set just a few days ago.

The resilient uptrend that led it up to these highs originated about after Barstool Sports founder Dave Portnoy shilled the cryptocurrency to his over 1 million followers, purchasing LINK and Bitcoin during a recent conference with the Winklevoss Twins.

LINK’s Latest Decline Blows its Market Structure

Regardless of the strength seen currently, forecasters are still stating carefulness when it comes to Chainlink’s near-term viewpoint.

A trader conveyed in a current tweet that the rebuff and weakening from its $20.00 highs had wrecked its market structure.

Because of this, he is forestalling it to see a move down to one of its instant support levels. These exist at roughly $13.00 and $10.00.

“Chainlink – First break in market structure in a long time. I wonder if it leads to the more significant downside, but here are the levels I’m looking at before coming back into the old range.”

Image Courtesy of Calmly. Chart via TradingView.

Except LINK spreads its slight drive today and starts steering back towards these highs, further downside is likely imminent.

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