Hot Crypto News Today Chainlink: Effects of this pattern’s break on LINK’s technicals could be… You Must Read To Get More Information For Trading and Investment.
Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.
Although its early June rally bagged in decent gains, the bears quickly regained control of the near-term trend. Thus, Chainlink [LINK] has been consolidated in the $5.45-$7.36 range for nearly three weeks now.
With the price falling below 200 EMA (green), sellers have ensured a long-term bearish outlook.
Further, considering the recent reversal from the Point of Control (POC, red), LINK could continue on its bearish track. At press time, LINK was trading at $6.1.
LINK 4-hour Chart
After an expected reversal from the $7.3 ceiling, LINK’s descent transposed into a short-term falling-wedge setup. The sellers propelled a 21% drop from 26-30 June.
The last 24 hours marked a decent buying attempt while the alt broke above its reversal pattern. But with the POC standing sturdy, the price action struggled to jump above the $6.3-level.
Furthermore, LINK saw a shooting star candlestick pattern after dropping from its POC. Thus, the bears re-enforced the near-term selling edge. Further, the recent selling volume has been slightly higher than the buy volumes. So the buyers needed to amplify their pressure to retest the POC.
Any drop below the $5.9-mark could expose the alt to an 8% downside toward the $5.45-support. An immediate recovery would likely see a squeeze phase near the POC in the $6.3-$6.2 range.
The Relative Strength Index (RSI) failed to breach the boundaries of its equilibrium for the last five days. After its recent bearish divergence with the price, it has visibly depicted a bearish bias.
Also, the Aroon up (yellow) indicator corresponded with the bearish outlook by staying at the 0%-mark. A gradual jump above the 30%-level could help the buyers challenge the POC. However, the ADX displayed a substantially weak directional trend for the alt.
Given the shooting star candlestick causing a reversal from the POC, LINK could see a near-term bearish pull. Any fall below the $5.9-mark 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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