Chainlink Price Analysis: High Momentum Fall Hints LINK To Break $6.24

On June 10th, the Chainlink(LINK) price turned down from the overhead resistance trendline, indicating the traders continue to respect the falling wedge pattern. This bear cycle has plunged the altcoin by 20% as it currently trades at $6.65. However, the long buyers waiting for an entry opportunity should for trendline breakout 

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

As evident by the technical chart of LINK/USD, the selling spree continues in 2022 and depreciates the market value by 82.7% within seven months. This downtrend indicates the coin price is falling under the influence of a descending wedge pattern.

The LINK price recently reached a low of $6.24, but buyers managed to reverse the prevailing trend for the short term to rechallenge the resistance trendline. However, the formidable selling pressure shows a continuation in the prevailing correction phase. 

Moreover, the increase in volume activity as the resistance trendline pushes the trend lower represents rising selling pressure. Hence, LINK traders can expect the downtrend to reach the support trendline and break under the $6.24 mark.

On the opposite end, the unlikely bullish reversal can lead to the trendline breakout resulting in a price jump to $12.5.

Technical indicator

Vortex indicator– the VI and V- slopes show a sharp turn towards each other, accentuating the strong selling pressure. The potential bearish crossover would attract more sellers to the market.

EMA– the LINK price reversal from the aligned resistance of the 50-day EMA and descending plunged below the 20-day EMA support. This flipped resistance(20 EMA) could bolster sellers to prevent wedge breakout.

• Resistance levels- $7.5, $9.8
• Support levels are $6.63 and $5