Following the parabolic rally that Chainlink saw just a couple of weeks ago, the cryptocurrency has been struggling to garner any significant momentum.
Its price has remained stagnant, mostly trading below $8.00 as its buyers attempt to catalyze further buying pressure.
Despite showing signs of near-term weakness, the cryptocurrency remains in firm bull territory over a mid-term time frame, as it is currently up from its 30-day lows of $4.40 that were set in late-June.
Analysts are now cautioning against getting too excited about the cryptocurrency’s near-term outlook, however, as many are noting that it could be quite some time before LINK can set fresh all-time highs.
The crucial level that bulls need to surmount if they want to drum up significant support is $8.00, but the selling pressure here has proven to be quite significant.
Chainlink Shows Signs of Weakness Following Recent Rejection at $8.00
At the time of writing, Chainlink is trading down over 3% at its current price of $7.65. This is around the price at which it has been trading throughout the past day.
Early yesterday, buyers attempted to propel LINK above $8.00, but the selling pressure here proved to be quite significant and stopped the cryptocurrency from advancing any further.
It now appears that the token could be in a precarious position, as analysts are noting that it may need to decline significantly further before finding any strong support.
While speaking about the crypto’s recent rejection, one respected trader explained that he expects it to decline to somewhere between $7.16 and $7.36 before finding any significant support.
He added that a decline beneath this level would invalidate all the factors working in bulls’ favor.
“LINK – Disappointing that this lvl didn’t hold. Now, I have to the see next lvl hold or I don’t like LINK for the long side anymore,” he explained.
Here’s the Crucial Price Level LINK Needs to Recapture to Push Higher
Earlier this month, Chainlink was able to set fresh all-time highs at $8.60. The surge here was quite intense, although it ultimately proved to be unsustainable.
For it to start rallying towards these highs, one analyst believes that the cryptocurrency needs to surmount $8.00.
He notes that a failure to do so could result in further downside.
“No moon till 8 usd is reclaimed – now previous support is resistance.”
Because Chainlink’s macro trend still rests firmly in bull territory, it is far too early to say with any certainty that the cryptocurrency’s uptrend is anywhere close to being finished.
Featured image from Unsplash.
Charts via TradingView.