Chainlink’s price action has been closely following Ethereum’s as of late, but it is beginning to break free of this correlation and gain some independent momentum.
This comes as the wider crypto market continues its ascent, with altcoins surging as Bitcoin consolidates around $18,000.
It does appear that there is an ongoing rotation of capital away from BTC and even Ethereum and towards smaller tokens that have a higher risk and higher upside potential.
This has benefited Chainlink, with the LINK token surging towards a crucial resistance level as analysts aim to see further near-term upside.
Where it trends in the near-term will likely depend on whether or not it can break above $13.80 in the near-term and flip this into support.
One trader is noting that a break above this level is required to flip bullish on the crypto, stating that a sustained bout of trading below this level will lead him to expect further downside.