While Bitcoin and Ethereum have stagnated in the past few days, Chainlink (LINK) has seen a strong upward trend. As previously reported by NewsBTC, the asset has set multiple milestones over the past week, exceeding $ 9 and then $ 10.
Just minutes ago when this article was written, the altcoin cracked the USD 11 resistance level. Chainlink is now trading for $ 11.60 – a price 18.3% higher than it was 24 hours ago. The following chart from TradingView shows the explosive price movement well.
Chainlink's recent surge has made cryptocurrency the seventh largest by market cap.
Chart of LINK's price action over the past few weeks from TradingView.com
Although the cryptocurrency has seen an extremely strong price development, not everyone is convinced that it will rise higher.
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Chainlink slams past $ 11 – but it could correct soon
Chainlink's price action over the past few days has pretty much convinced the bulls are in control. However, according to Tom Demark Sequential, the cryptocurrency could soon be reversing.
The TD Sequential is a time-based indicator that prints “9” and “13” candles at turning points in the trend of an asset. LINK is currently forming a "Sell 9" candle on its charts against Bitcoin and the US dollar. This suggests that a multi-day retracement could follow.
The last three instances of this signal, shown on the asset's graph, resulted in several days of consolidation before LINK saw a surge.
Chart of LINK's price action over the past few months with a Tom Demark Sequential overlay from a Telegram channel tracking the indicator. Chart from TradingView.com
Commenting on Chainlink's recent price action, one commenter said he intended to shut down LINK when it hits $ 12. He quoted How “euphoric” the market is right now shows how the cryptocurrency market can move against the sentiment of the majority (and has often done so).
"Shorting $ 12 $ LINK because everyone is euphoric."
Related Reading: How U.S. Restrictions on Wechat and Other Chinese Brands Could Boost Crypto
Bitcoin Must Hold $ 10,500 To Keep Altcoin Strength: Analyst
Although the TD Sequential expects the asset to be traced back, analysts believe that altcoins will outperform as long as BTC holds $ 10,500. As reported by NewsBTC, one trader wrote this week:
"BTC. 11500-11700, then down to test the 10400-10500 support zone, which should last a while. Looking for longs above this level and shorts below. Altcoins should do very well as long as BTC stays above 10,5,000 -> $ EOS, $ XTZ, $ XRP, $ XLM … "
Price chart of BTC price fractal by digital asset trader il Capo of Crypto (@Cryptocapo_ on Twitter). Chart from TradingView.com
With Bitcoin holding the also crucial $ 11,500 level until the end of the week (according to TradingView), altcoin bulls may have their wish granted for now.
Related Reading: XRP Overcoming This Critical Resistance Could Rally 45%: Traders
Featured Image from Shutterstock Price tags: linkusd, linkbtc Charts from TradingView.com Chainlink Prints Striking Bearish Reversal Signal After Surging to $11