Chainlink Price Analysis: EMA Resistance Bolster LINK Sellers For $5.5 Breakdown
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?
Key points:
- 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.
Source- tradingview
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.
Technical indicator
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
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