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