Chainlink has been struggling to gain momentum over the past couple of days, with the ongoing bout of capitulation within the altcoin market, creating far-reaching shockwaves that have impacted LINK.
The crypto is now struggling to hold above its $11.00 support level, and some analysts believe that it could be at risk of seeing further losses if this level is broken.
That said, while looking towards LINK’s BTC trading pair, the cryptocurrency’s parabolic trendline formed throughout 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 largely 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 strong 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 around 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 sharing 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 same analyst also said that it does appear 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 said while pointing to the below chart.
Image Courtesy of il Capo of Crypto. Source: LINKBTC on TradingView.
The coming few days should provide investors with greater insights into where altcoins like Chainlink will trend in the near-term. Any further Ethereum downside could place some serious pressure on LINK.
Featured image from Unsplash. Charts from TradingView.
