Chainlink (LINK) Price Sinks, Threatening to Breach Yearly Lows

The Chainlink (LINKprice is trading close to the support line of a corrective pattern. A breakdown from it could trigger a 50% decrease.

The Chainlink price has been trading inside a horizontal range since May 2022. The support area has an average price of $6, while the resistance is at $9.30. Currently, the LINK price is trading very close to the support area. Unlike numerous other coins in the crypto market, the LINK token price is above its May lows.

It is worth mentioning that the Chainlink price has not reached a close above resistance or below support. 

Also, the weekly RSI has generated bullish divergence and its trend line is still intact. As a result, whether the LINK coin price closes above the top of the range or below the bottom will determine the direction of the future trend. 

In case of a breakdown, the next support would be at $4.

The price movement from the daily time frame shows a short-term ascending parallel channel, considered a corrective pattern. Over the past 24 hours, the Chainlink price has decreased slightly and approached the support line of the channel. This caused the RSI to test its bullish divergence trend line (green line) for the fourth time.

A breakdown from the channels support line would be highly bearish, since it would also cause a breakdown in the RSI and the long-term $6 area. As a result, if it happens, the LINK price would be expected to fall to $4. 

Due to the readings from the daily time frame, a bearish Chainlink price prediction is more likely.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.

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