Published 52 mins ago
The LINK/USDT pair resonating inside a falling wedge pattern is gradually narrowing its price spread. Furthermore, the altcoin recently rebounded from the $5.5 support aims to rechallenge the overhead resistance. However, can it undermine the 20-and-50-day EMA resistance?
- The LINK price tumbled 30% in just three days
- A bullish breakout from the wedge pattern may trigger a recovery opportunity.
- The intraday trading volume in the LINK token is $711.5 Million, indicating a 0.59% loss.
The Chainlink(LINK) traders have strictly followed a falling wedge pattern since the coin price turned down from the November 2021 high of $33.8. Even though this pattern leads to a significant downtrend, it is expected to trigger a strong bullish rally as the altcoin breaks out from the overhead resistance.
On June 10th, the LINK price witnessed its recent reversal from the downsloping trendline and slumped by 40%. Last week’s crypto crash bolstered sellers to carry this bear cycle and plunge it to its previous lower low of $5.5
A morning star candle rebounded the LINK price higher, validating $5.5 as legitimate support. Furthermore, the recovery rally surged 30% and hit the 20-day EMA resistance. If the buying pressure persists, the altcoin will retest the descending trendline to replenish the selling momentum.
Ultimately, the LINK price chart reflects an overall downtrend, and a bullish breakout from the pattern’s resistance would give genuine signs of recovery. Furthermore, the post-breakout rally should surge the coin price to November 2021 top at $36.
RSI indicator- Where the LINK price action showcases a lateral walk for around five weeks now, the daily-RSI slope climbs higher, indicating growth in underlying bullish. This divergence would encourage buyers to breach the resistance trendline.
EMA- the 20-and-50-day EMA acts as a dynamic resistance assisting sellers in maintaining the falling wedge pattern. The recent jump from the $5.5 mark is currently struggling to surpass the 20-day EMA.
- Resistance levels- $9.32, $12.4
- Support levels are $5.5 and $5
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.