Chainlink has faced heavy selling pressure in the past few days as the cryptocurrency has been unable to reflect the gains Bitcoin made today.
These losses have hurt the technical outlook and may have opened the gates for further downside moves in the weeks and months ahead.
While talking about his technical outlook, one analyst said he believes LINK will continue to trend significantly lower unless the bulls reinforce and reverse the ongoing downtrend.
He specifically notes that the crypto is starting to look "weak and heavy" as it trades near the lower bound of its medium-term range set over the past few months.
There is a strong level of support that is just below the position that Chainlink is currently trading.
The reaction to this level could shed some light on the technical outlook, as a break below it could trigger a capitulatory slump similar to the one earlier this month. During that time, LINK hit lows of $ 9.00.
Chainlink struggles to stay above the lower limit of the range when selling pressures rise
At the time of writing, Chainlink is trading over 4% at its current price of $ 11.63. This is a notable drop from the recent highs of $ 13.20 set a few days ago.
The trading range that LINK set in September is between $ 11.20 and $ 13.20.
The cryptocurrency has seen strong reactions at these two levels in the past few days and weeks and is now rapidly approaching the bottom of this range.
If the $ 11.20 level is not considered support, an interruption below that can trigger a capitulatory slump that causes the crypto to suffer serious losses.
This potential decline could be similar to what it saw in early September, when Chainlink fell to lows of $ 9.00 before its rebound.
Analyst: Buyers will soon have to reinforce and save the LINK to avoid serious disadvantages
An analyst took a look at Chainlink's market structure explained that he expects Chainlink to see further downward moves unless the bulls strengthen and reverse their ongoing downturn.
He's particularly keen on Bitcoin to see where LINK might be headed next.
“Link Marines had better get in and save LINK soon. That … looks weak and heavy. If Bitcoin trips even a bit, I think Chainlink will go back below $ 10 and stay there for a bit. "
Image Courtesy of Loma. Chart via TradingView.
As both the Bitcoin and Ethereum trends are likely to have some impact on Chainlink's trend in the near future.
Featured image from Unsplash. Charts from TradingView.