Price Analysis

Chainlink Price Faces 20% Downside Risk as Key Support Falters

The chainlink price breakdown from a descending triangle amid market correction sets the asset for an extended correction.

Published by

Sahil Mahadik

Published 12 Apr, 2024 | 06:25:13 PM UTC

Chainlink Price Faces 20% Downside Risk as Key Support Falters

Highlights

A bearish breakdown below the descending triangle support accelerates the supply pressure on the LINK coin.
The falling Chainlink price may find suitable support at the $13 mark aligned with the 50% FIB level.
The intraday trading volume in the LINK coin is $401.5 Million, indicating a 47% gain.

Amid the broader market correction, the Chainlink price witnessed a steady correction evidenced by the lower high formations in the daily chart. An analysis of the daily chart revealed this retracement as the development of the descending triangle pattern. The bearish pattern coiled with market uncertainty could lead to a prolonged downfall in the LINK coin. Should you sell?

Also Read: Mining Bitcoin Harder Than Ever As Difficulty Reaches 86 Tln Hashes Ahead Halving

Is Falling LINK Price Heading to $14?

The ongoing correction trend in Chainlink coin can be traced through the development of a descending triangle pattern. The downsloping trendline led the altcoin price from $22.8 to $17 registering over 25% fall within a month.

The pattern assists traders to sell on bullish bounces leading to a breakdown below the key support. The LINK price shows this neckline supports around $16.5 level. With an intraday loss of 8%, the altcoin slides below the support offering a suitable barrier to prolonged correction.

By press time, the Chainlink coin stands at a market cap of $9.43, holding its position among the top 20 largest cryptocurrencies. If the asset sustains this breakdown, the LINK price may plunge another 20% to hit the $13 mark.

However, on a contrary note, the range between $13-14 stands as crucial support coinciding with 38.2% and 50% Fibonacci retracement levels. Holding above this safe net indicates the buyers continue to hold a firm grip over this asset.

In addition, with the Bitcoin-halving schedule later this month, the cryptocurrency market is anticipated to witness a major rebound. In tandem with Bitcoin, the Chainlink price may revert from the aforementioned support to prevent a major downtrend.

Also Read: Crypto Prices Today April 12: Bitcoin At $71K, ETH Dips Below $3600 As SOL & ADA Recover

Technical Indicator

BB Indicator: The downsloping in the lower boundary of Bollinger Band indicates the traders are aggressive in selling this coin.
Average Directional Index: The daily ADX slope uptick at 18% reflects the selling momentum in build among LINK traders.

Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

Published by

Sahil Mahadik

Published 12 Apr, 2024 | 06:25:13 PM

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