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CHAINLINK coin price analysis: LINK token continues to resonate in a falling channel pattern

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  • LINK token falls in a downtrend within a parallel channel after its failed recovery from the sudden fall in May.
  • The coin price has recently taken support from the $14.2 support with long tails daily, implying price rise until the resistance trendline.
  • The LINK/BTC pair trades at 0.0005474 with an intraday up move of 5.37%. 
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LINK coin price fell more than 40% after facing resistance from the $25 level and is now rising again by forming a morning star pattern near the support level of $14. Currently, the price is increasing in the daily timeframe, but the resistance trendline might reverse the direction again. 

The buying volume over the daily chart is above average, confirming the bearishness of this pattern. The reversal of price from the resistance trendline might lead to continued resonance inside the pattern. 

The LINK token values at $18.47 with a 20% fall in intraday trading volume; however, the coin price managed to rise 15.07% in the past 24 hours. 

The Falling Channel Expands With Increasing Bearishness In LINK Token

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LINK has shown a long lower price rejection candle followed by a strong bullish engulfing candle in the 4-hour timeframe to boost the price by more than 20%. However, the coin price is encountering resistance from the resistance trendline, which has shoved the price back down almost three times now. 

A reversal might lead to another 25% fall. The coin price has been consolidating inside the pattern and has not given any significant move on either side. 

The support level of $14.2 has lifted the price back up, and it might again provide some support to LINK tokens. Thus, in the current phase, the level of $14.2 is the immediate support, whereas the immediate resistance level is $19.8

The recent bullish movement has brought the price close to the 50 EMA and provides some resistance to the price; however, the overhead resistance trendline holds the ultimate key for the breakout of this pattern.

The RSI (slightly bearish) indicates slight bearishness while trading at 46 and heading even further into the overbought zone. In addition, there is also a bullish divergence present which would support this short bullish movement.

+The ADX indicates a slight strong momentum as it is trading at 40, and the slope in ADX increases, implying a loss of bull momentum. 

Conclusion: The LINK coin price has recently exhibited support from the $14.2(also support trendline), suggesting the start of an uptrend, but the falling channel pattern is still maintained as the correction line has paused the trend many times and might do it again. 

Loss of momentum and has managed to slow down the bulls; hence, some traders can perform an inside the pattern trading practice. But the breakout is still quite a far possible chance, and the price could resonate furthermore inside the pattern.

Support– $14.2 along with major EMAs

Resistance– $19.8