After trading near the 15.00000 level only a week ago, LINK/USD has been able to incrementally increase its value. As of this morning, Chainlink is within sight of the 20.00000 juncture which, if touched, would make nearly a 25% gain in value. Volatility remains a dominant feature of LINK/USD. Speculative bulls, however, are encouraged to look at mid-term and long-term price charts before they decide to pursue buying positions.
The gains made in LINK/USD the past five days are noteworthy, but the broad cryptocurrency market has also produced some upside. However, the rather unpleasant fact remains that LINK/USD remains near important lows when taking a look at charts of one month and longer. The ability to gain value is a great achievement for speculators who bought at the lows and cashed out winnings, but the question going forward is what happens next.
If LINK/USD is not able to battle much higher and is not able to sustain values above the 20.00000 it could be a signal that additional downside momentum will develop. While a low slightly below the 16.00000 price was attained only a few days ago, another lower mark exists from the 22nd of June, when LINK/USD traded near the 15.0000 ratio, and this could trouble traders' sentiment as they ponder direction.
The problem technically for LINK/USD is that it remains only slightly above long-term support junctures which, if proven vulnerable, could set off a test of rather epic proportions. Short-term support near the 19.0000 should be watched carefully; if this level fails to hold and Chainlink establishes volatile price velocity, traders may be right to suspect that another tests of lows will develop sooner rather than later. The ability of the broad cryptocurrency market to stabilize the past few days is good, but is it enough to believe a sudden change in sentiment has taken place? Until LINK/USD is able to break higher and sustain values above the 20.00000 ratio, there is a reason to remain skeptical about bullish capabilities.
Cautious traders who believe that another wave of bearish momentum is going to take place within LINK/USD cannot be blamed. Selling LINK/USD on slight moves higher and placing take-profit orders slightly above current nearby support levels could prove to be a legitimate short-term wager. From a risk/reward perspective, downside sentiment may still have more power in the market.
Chainlink Short-Term Outlook:
Current Resistance: 19.95000
Current Support: 19.08000
High Target: 20.94000
Low Target: 17.80000
