Here’s Why Chainlink Coin Is Yet To Witness Correction Phase

The Chainlink coin price shows the formation of a symmetrical triangle pattern. The symmetrical triangle is considered a neutral pattern, as it can be a continuation pattern or a reversal pattern, depending on the previous price trend or breakout side. As of now, the Chainlink price trades at the $6.9 mark and continues to wobble inside the triangle pattern. Here’s how this pattern may influence the LINK coin’s future price.

Key Points: 

• The LINK price action has narrowed enough within the triangle pattern to be considered a no-trading
• Either side breakout from the pattern trendline will release the coin price from ongoing consolidation.
• The intraday trading volume in the LINK coin is $1.7 Billion, indicating a 207% gain.

Source- Tradingview

The Chainlink price has witnessed steady growth since the beginning of 2023. Amid this recovery, the coin price reached a high of $7.5, registering 34.4% since January 1st.

However, with the increasing uncertainty, the price action turned sideways and shaped into a symmetrical triangle pattern. This continuation pattern occurs when prices are moving within two converging trend lines that form a triangle shape. These trendlines are typically drawn by connecting peaks and troughs, and the converging trend lines signal a possible breakout in price movement.

Today, the Chainlink coin shows another failed attempt to break the lower support trendline. The lower price rejection shown in the daily candle indicates the buyers continue to defend this support, and the consolidation phase may prolong for a few more sessions.

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However, the price action has nearly reached the peak of the triangle, indicating the breakout is just around the corner. Thus, considering the ongoing bearish sentiment in the market, the LINK price is more likely to break the lower trendline.

A daily candle closing below the support trendline will accelerate the selling pressure and trigger a new correction phase. The potential downfall may tumble the prices 8.85% down to reach the $6.3 mark.

On a contrary note, a breakout above the overhead trendline will resume the prior recovery.

Technical Indicator

EMAs: a potential bullish crossover between the 50-and-100-day EMA may increase the buying pressure in the market.

RSI: The daily RSI slope near the midline indicates a neutral sentiment from market participants.

Chain Link Coin Price Intraday Levels

• Spot rate: $6.9
• Trend: Bearish 
• Volatility: High
• Resistance levels- $7.5 and $8.1
• Support levels- $6.6 and $6.05