Chainlink [LINK] Price Analysis: LINK/USD Risks Plunge To $4.2 Amid Possible Breakout Of This Triangle Pattern


The price of LINK remains steady above the $4 mark despite market sentiments which have generally turned highly unstable. Amid sudden price range-bound experienced in the markets early on into the week, LINK remained steady and traded sideways through the turmoil.

However, it seems LINK will have to respect an inbound bear tantrum that might eventually drag its price to the major support established at $4.2 last week. 

The market is widely unpredictable as prices remained steady over a couple of days. However, in the short term, the selling pressure seems to be pulling LINK/USD towards the support level of an intraday triangle pattern.

A breakout of this triangle could determine the price in the next few days. 

Chainlink [LINK] Price Analysis

However, LINK/USD faces rejection at the $4.5 mark which intercepts with both the top of the falling resistance trendline and the upper Bollinger resistance line.

This set up of resistances give the bears an advantage to push prices further downwards in the short term. In the case of a breakout below the triangle, the price will experience a free fall towards the support level at $4.2. 

Although LINK price is still flirting with the $4.5 mark at the upper Bollinger level, the bulls may rally again.

If a breakout favors the buying pressure, further resistances lie above the upper Bollinger resistance line at $4.6, a level which was last visited on the 1st of June. 

More so, the Resistance Strength Index (RSI) has just penetrated the 50.0 level. It is currently obeying an active selling pressure aiming to drag prices down to the oversold condition at 30.0.

If the sellers exert a little more pressure, we may see RSI falling towards 20.0, altogether confirming a sell market.

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Disclaimer : The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of Coinpedia. Every investment and trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Dare Shonubi

Certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.

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