Should You Buy LINK After This 8% Pullback?

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Published 32 mins ago

The Chainlink(LINK) price is in turmoil as two contrary price patterns influence it. The first one being a rounding bottom pattern assisted buyers in forming bottom support at $5.7. In response to this bullish reversal pattern, the LINK price rebounded from $5.7 and initiated a new recovery cycle. 

Key points: 

  • LINK price shows long-wick rejection candle at wedge pattern resistance trendline
  • The midline of the Bollinger band indicator gives dynamic support to coin price
  • The intraday trading volume in the LINK coin is $630.4 Billion, indicating a 90% gain.

LINK/USDT ChartSource- Tradingview

Since last month the LINK/USDT pair has surged 46.8% and breached the in-between resistance of $7.3 and $8. However, the bullish rally is resonating inside an ascending wedge pattern which in theory encourages a significant correction.

However, as of today, the LINK price currently trades at $8.76, with an intraday gain of 2.%. Though the coin chart shows a 90% jump in volume, the long wick rejection candle at the wedge pattern’s resistance trendline hints at another correction.

The bearish reversal may tumble the altcoin by 6% and plunge it to aligned support of the rising trendline and $8 psychological level. If the sellers break this confluence support, the wedge pattern may get triggered and dump the coin price below the $7.166 support.

On a contrary note, if the LINK price continues to rise within this pattern, it will soon reach the $9.31 neckline resistance of the rounding bottom pattern. A bullish breakout from $9.31 will offset the wedge pattern and release the altcoin from a long correction.

Technical Indicator

RSI indicator: the daily-RSI slope rallying higher along with price action suggests no weakness in bullish commitment yet. Moreover, the indicator wavering around the 70% mark indicates aggressive buying in the market, reflecting the wedge pattern will continue for a few more sessions.

Bollinger band: previously, when the LINK price tested the indicator’s upper band, the market participants witnessed a minor correction. Thus, the current retest to this resistant accentuates the bearish pullback to the support trendline.

  • Resistance levels- $9.6, and $11.6
  • Support levels- $8 and $7

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.

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