August 14, 2020
Chainlink has been caught in the throes of an insane uptrend over the past couple of years.
Due to a swerve of declarations, incorporations, and other pieces of good news regularly surrounding the project, the cryptocurrency has been able to resist the market-wide downtrend seen during 2019. This extreme bullishness has transitioned over into 2020, with LINK experiencing parabolic momentum that allowed it to set new all-time highs.
In the short-term, its momentum shows some signs of slowing as it is about to face heightened selling pressure. Despite its enormous strength, one analyst is now warning that a fractal pattern suggests downside is forthcoming. He also states that this potentially inbound dip won’t be for buying and that it could affect it seeing a strong downtrend that drags it lower in the weeks and months to come.
Chainlink Set Nearly $18.00 Yesterday
Just Recently, Chainlink is trading up marginally at its current price of $16.50. Meanwhile, yesterday, LINK earned another invasion of buying pressure that increased its rate, sending it swelling from lows of $12.20 to $16.00. After consolidating this price region for a prolonged period, the crypto then experienced another huge swell in purchasing pressure that guided it to highs of nearly $18.00.
It was prohibited at these highs and is once again consolidating within the mid-$16.00 region. A few critical drifts have driven the parabolic growth this symbol has seen in current times. One such trend is the myriad of declarations surrounding combinations of the project’s oracle network.
From a technical perspective, some analysts have also pointed to the massive number of short locations always opened by LINK as another reason that has provided bulls with fuel to push it higher.
Some even consider Chainlink as the “Tesla of crypto” due to it being determined by similar technical dynamics.
LINK’s Near-Term Outlook looks Trouble for this Fractal
While talking of the cryptocurrency, one analyst illuminated that a “Hyperwave fractal” suggests that Chainlink’s highs of just under $18.00 will streak a mid-term top.
He also states that this means the area among $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.
As Chainlink isn’t too linked to the aggregated cryptocurrency market, there’s a strong probability that where it trends next won’t be reliant on Bitcoin.