Chainlink Breakdown Is Imminent Despite Setting High After High

Another chainlink breakdown is imminent as it looks like LINK cannot close this week’s candle above $11 per token as we are reading more in today’s Chainlink crypto news.

Chainlink is now trading at half the price that it was trading a month ago despite entering the price discovery mode and setting new highs. Chainlink 2020 was even brighter than it was for Bitcoin and Ethereum by far.
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Even after dropping from 50% from its highs, the altcoin still has over 400% ROI to mark for the year-to-date climb. Even a drop to $1 on Black Thursday was bought up with strong power and the rebound effect helped it propel the Chainlink price to a new peak over the year. After touching $20, things started crashing down and the altcoin was reeling ever since. A few attempts to return to new highs were swatted down despite Bitcoin being bullish.

Chainlink is back trading at under $10 and is on the cusp of a critical weekly close that could send the altcoin spiraling further. The LINK/USD pair started to break down below the middle-line moving average on the Bollinger Bands technical analysis indicator. The candle closes through the middle-BB either way which is considered as a buying or selling signal and a large move often results, as noted in the charts as the candle close above it is the reason that sent Chainlink into overdrive in 2020.

The tool was effective at acting as a selling signal for the pair in the past weekly timeframe which out of five times, the asset closed below and resulted in an on the average decline of 43%. Corrections range from 20% to 70% putting about 43% about in between the two stats. A 43% fall from here will create a chainlink breakdown at about $6 which was the last touch of support before the altcoin spiraled on a parabolic rise to $20. Some analysts claim that the movement is not over yet but even $6 might not be the final bottom if they are wrong.

According to experts like Peter Brandt who called Bitcoin’s 84% drop a year in advance, claim that the asset that losses such a strong trajectory, could decline by about that much.  A full 84% retracement in LINK would take it to $3. Falling 90% or more as other altcoins did will bring the cryptocurrency back to a dollar and a half.