Chainlink Technical Analysis: LINK/USD Blasts New All-Time Highs But This Rising Wedge Pattern Spells Doom

Chainlink has ascended to new all-time highs around $17.00 in the push for gains eyeing $20.00.
LINK/USD is trading within a rising wedge pattern spells doom with a possibility for breakdown to $15.00.

Chainlink is arguably the best performing cryptocurrency in the market this August. It is giving major assets such as Bitcoin, Ethereum and Ripple a run for their money. For instance, at the time of writing, LINK/USD has surged over 27% to trade at $16.41. This follows a minor retreat from highs around $17.00. A bounce seems to be underway after the price embraced support at $16.00.

From Monday, Chainlink has been on an impressive journey of breaking key barriers. The bullish action has sustained incredibly well above the ascending trendline (forming part of the rising wedge pattern. The price has formed a good higher high and higher low pattern but with the upside limited by the rising wedge pattern, progress eyeing $20.00 could be jeopardized.

Effort and attention among the bulls are channeled towards breaking the resistance at $17.00. Perhaps with the hurdle in the rearview, LINK/USD will encourage more buying entries, thereby drawing nearer to the ultimate level at $20.00.

LINK/USD 15’ chart

Technically, upward momentum has lost its charm at the moment. The Relative Strength Index (RSI) is holding above the midline but struggling with movement towards the overbought (70). The MACD, on the other hand, is trending above the mean line (precisely at 0.2814). It features a minor bearish divergence (-0.025).

In other words, the path of least resistance is no longer to the upside. Instead, Chainlink is likely to focus on holding above the support at $16.00 in order to avert further losses to $15.00. Other support levels lie with the 50 SMA and the 100 SMA in the 15-minutes timeframe.

LINK/USD intraday levels

Spot rate: $16.18

Percentage change: -1.31 (on the day)

Relative change: -0.15

Trend: Bearish bias

Volatility: Shrinking

Disclaimer

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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