Chainlink has been struggling to break above $11.00 throughout the past few days and weeks. This level has become a strong resistance for the cryptocurrency, and both bulls and bears have largely reached an impasse.
Although Chainlink has a history of forming price trends independent of the rest of the market, it has lost some of this independence over the past few weeks as it begins moving in lockstep with Bitcoin.
LINK is currently trading down 50% from its recent highs that were set roughly one month ago.
Despite the intensity of the downtrend seen following the rejection at these highs, the cryptocurrency has been entering what appears to be an accumulation phase, which indicates that the base of support it is forming below $10.00 could act as a launchpad in the coming few weeks.
One trader is now expecting massive upside in the coming few weeks.
He notes that LINK is nearing the apex of a pennant formed