LINK Price Analysis: Should You Buy LINK After This 8% Pullback?

The Chainlink(LINK) price is in turmoil as two contrary price patterns influence it. The first one being a rounding bottom pattern assisted buyers in forming bottom support at $5.7. In response to this bullish reversal pattern, the LINK price rebounded from $5.7 and initiated a new recovery cycle. 

Key points:

• LINK price shows long-wick rejection candle at wedge pattern resistance trendline
• The midline of the Bollinger band indicator gives dynamic support to coin price
• The intraday trading volume in the LINK coin is $630.4 Billion, indicating a 90% gain.

Source- Tradingview

Since last month the LINK/USDT pair has surged 46.8% and breached the in-between resistance of $7.3 and $8. However, the bullish rally is resonating inside an ascending wedge pattern which in theory encourages a significant correction.

However, as of today, the LINK price currently trades at $8.76, with an intraday gain of 2.%. Though the coin chart shows a 90% jump in volume, the long wick rejection candle at the wedge pattern’s resistance trendline hints at another correction.

The bearish reversal may tumble the altcoin by 6% and plunge it to aligned support of the rising trendline and $8 psychological level. If the sellers break this confluence support, the wedge pattern may get triggered and dump the coin price below the $7.166 support.

On a contrary note, if the LINK price continues to rise within this pattern, it will soon reach the $9.31 neckline resistance of the rounding bottom pattern. A bullish breakout from $9.31 will offset the wedge pattern and release the altcoin from a long correction.

Technical Indicator

RSI indicator: the daily-RSI slope rallying higher along with price action suggests no weakness in bullish commitment yet. Moreover, the indicator wavering around the 70% mark indicates aggressive buying in the market, reflecting the wedge pattern will continue for a few more sessions.

Bollinger band: previously, when the LINK price tested the indicator’s upper band, the market participants witnessed a minor correction. Thus, the current retest to this resistant accentuates the bearish pullback to the support trendline.

• Resistance levels- $9.6, and $11.6
• Support levels- $8 and $7