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Crypto Hot News Assessing odds of Chainlink breaking down from its current pattern

Hot Crypto News Today Assessing odds of Chainlink breaking down from its current pattern You Must Read To Get More Information For Trading and Investment.

Chainlink’s [LINK] inverse head and shoulder breakout failed to maintain a position beyond the three-month trendline resistance (white, dashed). While the price kept traversing below the south-looking EMA ribbons, the sellers kept finding fresher multi-monthly lows until mid-June.     

For nearly a month, the price action has been compressing near the Point of Control (POC, red). A potential break into volatility could induce a trend-altering rally in the coming days. At press time, LINK traded at $6.2.

LINK Daily Chart

Crypto Hot News Assessing odds of Chainlink breaking down from its current pattern

After an expected reversal from the $9.2-mark, LINK’s descent transposed into a symmetrical triangle-like setup. The sellers propelled a 44.78% drop from 10 June while bringing LINK down to its two-year low on 13 June.

The past month marked a decent bullish attempt as the alt saw a rise on its troughs. But the trendline resistance has kept the peaks under a solid check and encouraged a rather squeeze near the POC region.

Furthermore, the Supertrend refused to change its bearish stance for nearly a month now while continuing to look south. Any close below the lower trendline of the triangle could inflict a downside break.

This could expose the alt to a nearly 10% downside toward the $5.5-$5.9 range support. An immediate recovery would likely see a slowdown from the EMA ribbons and the $6.8-resistance.

Rationale

Crypto Hot News Assessing odds of Chainlink breaking down from its current pattern

The Relative Strength Index has failed to breach the limits of its equilibrium for over a month. The index has taken a sideways track while exhibiting a slight edge for the sellers.

The CMF’s devaluation in the last week has kept it below the zero-mark. A continued spot below this level would favor the sellers in continuing their rally. Nevertheless, the ADX has displayed a substantially weak directional trend for the alt.

Conclusion

Given the rejection from the trendline resistance causing a reversal from the POC, LINK could see a near-term bearish pull. Any fall below the current pattern could propel a further downfall. The targets would remain the same as above.

Any bearish invalidations could see a relatively sluggish phase near the POC zone. Finally, an overall market sentiment analysis becomes vital to complement the technical factors to make a profitable move.

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Written by thegamefi

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