Chainlink’s price has been sinking like a stone throughout the past few days and weeks, with buyers being unable to garner any sustainable bullish momentum as the cryptocurrency faces immense inflows of selling pressure.
This has caused the crypto to dive down to a crucial support level that has proven to be historically significant.
As such, how it reacts to this level in the days and weeks ahead could provide some serious insights into its near-term outlook, with a strong bounce here providing bulls with a serious boost.
A break below this level, however, could cause LINK’s price to nuke lower, potentially reeling to price levels not seen since the start of the year.
One highly respected trader recently offered a grim outlook on Chainlink, explaining that he believes the crypto is poised to see some serious near-term downside if the support level just below its current price is shattered.
Chainlink Struggles to Rebound as Selling Pressure Persists
Chainlink has undoubtedly been one of the most bullish digital assets throughout the past several months and even years, with its price consistently pushing higher despite the turbulence seen throughout the aggregated crypto market.
This strength has not stopped it from seeing massive downside throughout the past few days and weeks.
After rallying as high as $20.00 in August, LINK faced a grueling rejection that threw it into an intense downtrend.
Although bulls previously stopped it from breaking below $10.00, this key support was shattered just a matter of days ago.
At the time of writing, Chainlink is trading down marginally at its current price of $8.80. This is around where it has been trading throughout the past day, with bulls beginning to establish $8.50 as a support level.
Trader: LINK May “Nuke” Lower if $8.50 Support Breaks
While speaking about Chainlink’s near-term outlook, one respected trader noted that $8.50 is a critical historical support level that must be ardently defended by bulls.
He explained that a dip below this level would allow things to “get pretty ugly” for the cryptocurrency.
“Chainlink at absolute Gigasupport. Link marines have an opportunity to save LINK from the giga nuking. Below $8.50 would probably get pretty ugly, as everyone from the last month and a half would be underwater…”
Image Courtesy of Flood. Chart via TradingView.
How Bitcoin trends in the near-term may also have some heavy influence on where Chainlink trends in the days and weeks ahead.
Featured image from Unsplash. Charts from TradingView.
