Will Chainlink Price Extend Its Correction Below $12? Chart Pattern Offers Insight

The falling Chainlink price is heading to a key support level, preparing for a bullish bounce amid wedge pattern formation.
By Sahil Mahadik
Will Chainlink Price Skyrocket Above $15 This Week?

Highlights

  • The Chainlink Price will lead the current correction trend until the falling wedge pattern is intact.
  • A bearish crossover between the 20-and-200-day EMA accelerates the supply pressure in LINK price
  • The intraday trading volume in the LINK coin is $258.2 Million, indicating a 4% gain.

Amid the recent market sell-off, the Chainlink price witnessed a notable reversal from the $16 psychological level. This new lower high formation in the daily chart indicates the sellers are still dominating the price movement and have plunged the asset to $13.7, registering a weekly loss of 14.4%. If the supply pressure persists, the LINK price could retest the multi-month support at $11.8, indicating the potential of a bullish reversal.

Also Read: Bitcoin and Altcoins Come Under Pressure Ahead of Fed’s Interest Rate Decision on May 1

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Will the Falling Wedge Lead to a Bullish Reversal?

BINANCE:LINKUSDT Chart
Chainlink Price| Tradingview

Over the past seven weeks, the Chainlink price has witnessed a steady correction trend evidenced by a falling wedge pattern in the daily chart. Under the influence of this setup, the bears led lower high formations signaling the traders are actively selling on a bullish bounce.

However, the 50% Fibonacci retracement level around $13.82 level has stalled the falling price, resulting in a 1.14% intraday jump. In a recent analysis by the prominent trader @alicharts, a buy signal was identified for Chainlink (LINK) on the 12-hour chart. This technical indicator, known as the TD Sequential, suggests a potential upward movement for LINK if it sustains above the support level of $13.87. 

Should the cryptocurrency maintain this critical support, the trader hints at a strong rebound to the target price of $15.50. This potential upswing could breach the overhead trendline of the wedge pattern and signal a better confirmation of a renewed recovery trend.

A post-breakout rally could bolster buyers to chase a potential target of $18.6, followed by $20.7 and $22.86.

On a contrary note, if the broader market correction prolongs, the LINK price is likely to retest the pattern’s support at $11.72 to seek buying liquidity. Until this lower support is intact, the Chainlink coin holds a strong potential for bullish reversal.

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Technical Indicator:

  • Experimental Moving Average: The LINK price trading below the 200-day EMA provides the sellers an upper hand over this asset.
  • Directional Movement Index: A negative crossover between the DI+(blue) and DI-(orange) slope indicates the correction trend is active.
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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
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