Chainlink has witnessed some intense selling pressure throughout the past couple of days, with the cryptocurrency being unable to mirror the gains seen by Bitcoin today.
These losses have struck a blow to its technical outlook, potentially opening the gates for it to see further downside in the coming weeks and months.
While speaking about its technical outlook, one analyst said that he is anticipating LINK to see significantly further downside unless bulls step up and reverse the ongoing downtrend.
He specifically is noting that the crypto is beginning to look “weak and heavy” as it trades near the lower boundary of its mid-term range that has been established throughout the past few months.
There is one strong support level that exists just below where Chainlink is currently trading at.
Its reaction to this level could illuminate its technical outlook, as a break below it may spark a capitulatory plunge similar to that seen early this month, during which time LINK hit lows of $9.00.
Chainlink Struggles to Hold Above Lower Range Boundary as Selling Pressure Ramps Up
At the time of writing, Chainlink is trading down over 4% at its current price of $11.63. This marks a notable decline from recent highs of $13.20 that were set just a few days ago.
The trading range that LINK has established throughout September exists between $11.20 and $13.20.
The cryptocurrency has posted strong responses to both of these levels throughout the past few days and weeks, and it is now fast approaching the bottom of this range.
If the $11.20 level doesn’t hold strong as support, a break below it could spark a capitulatory plunge that causes the crypto to see serious losses.
This potential decline could be similar to that seen in early-September when Chainlink dove to lows of $9.00 before rebounding.
Analyst: Buyers Need to Step Up and “Save” LINK Soon to Avoid Serious Downside
While looking towards Chainlink’s market structure, one analyst explained that he is expecting Chainlink to see further downside unless bulls step up and reverse its ongoing downswing.
He is particularly looking towards Bitcoin for insight into where LINK may trend next.
“Link Marines better step in and save LINK soon. This…looks weak and heavy atm. If Bitcoin trips, even a little bit, I think Chainlink goes back under $10 again and stays there for a bit.”
Image Courtesy of Loma. Chart via TradingView.
How both Bitcoin and Ethereum trend in the near-term will likely also hold some influence over Chainlink’s trend.
Featured image from Unsplash. Charts from TradingView.
