Veteran crypto analyst Michaël van de Poppe has projected a bullish outlook for Chainlink (LINK), predicting an imminent breakout for the asset if Bitcoin (BTC) holds above $25,700.
Van de Poppe highlighted this bullish situation in his latest analysis of Chainlink’s price movements. The analyst cited data from a 12-hour LINK chart to present his assertions. The chart reveals a recovery candlestick from LINK following two consecutive losing 12-hour sessions.
This recovery brought the asset to $7.21. Amid the latest candlestick, van de Poppe disclosed that he expects Chainlink to record higher lows. This expectation demonstrates the analyst’s bullish sentiments towards LINK amid the looming recovery.
According to van de Poppe, LINK could leverage these higher lows for a comeback against the bears, serving as the asset’s springboard for a rally that would induce a breakout to the range highs.
Van de Poppe’s chart presents an initial resistance target of $7.785. The last time Chainlink saw this price was on Oct. 8, amid a 1.98% rise that day. The asset collapsed from this price point to a low of $7.134 the next day, closing the day with a 5.17% drop in value.
LINK has failed to reclaim the 7.78 price threshold since then. Meanwhile, in addition to the $7.785 threshold, Michaël van de Poppe provides a higher resistance target at $8.590. LINK has not visited this price point since it dropped from $8.798 on April 18.
LINK’s Dependency on BTC
Van de Poppe’s analysis also highlights the significant impact of the broader market on LINK‘s performance. He revealed that Chainlink’s ability to break out to the projected range high depends on Bitcoin’s ability to hold above $25,700 is a requirement.
Notably, Bitcoin has continued to record persistent declines over the past five days, dropping from a high of $28,149 on Oct. 8 to its current value of $26,806. BTC’s next support level sits at the Fibonacci level of 0.236, at $26,604. A break below this would bring the $26,002 support into play.
Essentially, Bitcoin is a long way from the $25,700 level. As a result, LINK can depend on the firstborn crypto to deliver, except in the event of more substantial selling pressure. LINK is trading for $7.218, trading flat over the past 24 hours.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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