Chainlink price on the verge of an altcoin boom, holding vital level of $15 in the face of declining dominance of Bitcoin. Critical momentum: Traders look at the important $17 breakout.
Chainlink (LINK) has succeeded in closing the previous trading period on a green candle, but is still in an uncertain position by staying barely above the pivotal point of 15.
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The relationship between the price of Chainlink and domination by Bitcoin (BTC.D) is one of the most monitored by market participants and is one of the determining factors on the next directional release of LINK.
The price behavior of Chainlink indicates a struggle between the buyers on the part of defense and sellers curbing the upswing.
Bitcoin Dominance and LINKBTC: Key to Next Move
The continuing presence or absence of Bitcoin dominance is central to the price movement of Chainlink.
Capital tends to be redirected into major altcoins such as Chainlink when the domination of Bitcoin diminishes, opening the opportunity to possible rallies.
On the other hand, the increase in Bitcoin dominance will remove liquidity to altcoins, holding tokens such as LINK range-bound.
On the current trend, it can be seen that a drop in BTC.D can soon provide a bullish breakout of Chainlink, particularly when the pair of Chainlink vs. Bitcoin, LINKBTC, demonstrates better results.
The short-term trading is indicative of a choppy and lacks directional momentum as it involves quick scalp trading as opposed to long-term trading.
Resistance areas between 15.80 and 16.90 are being targeted by traders as where potential pullbacks might occur, with the key breakout above 17, potentially opening the door to the 20 mark and above.
The fact that volume has been shrinking over the past few price falls shows that participation is declining, which is usually the precursor to a sudden price movement when a breakout takes place.
Support Holds but Trend Reversal Needs Confirmation
Chainlink has maintained a corrective price behavior, falling out of rejection at approximately 20 in October and experiencing a bearish short-term trend characterized by decreasing highs.
The above holding is vital; failure to hold at a higher level of above 15 will see the token in a further decline of reaching lower levels of support of 13.70 or even 12.
Nonetheless, this level may be taken as a foundation for bouncing back to the resistance of $1718, an indication of increasing investors’ enthusiasm.The
The Relative Strength Index (RSI) is in a neutral range, which suggests that there could be consolidation but not a full reversal.
Should Chainlink be able to firmly overcome the resistance at the point of $17 on a volume basis, then it could lead to a reversal of the order towards the bullish price movement, which could take the price soaring high within a short time, to even $20 and possibly even higher to $30, as opined by the technical observers.
The relationship between the Bitcoin dominance and the LINKBTC will continue to be a significant indicator that traders need to use to get early warnings of a reversal in the momentum.
The post Chainlink News: Chainlink Clings Above $15 as Bitcoin Dominance Shifts appeared first on Live Bitcoin News.