LINK Bearish Pattern Forms, Preparing To Revisit $10.20 Level

A LINK bearish pattern forms which lead the cryptocurrency to revisit the $10.20 level as we can see in today’s chainlink news.

Link started a sharp decline after it formed a head and shoulders pattern as the bears were also starting to gain more strength and aimed for $10.20. the token price started a fresh decline after failing to clear the $12.50 resistance against the US dollar so the price is now trading below the $11.20 and the 100 simple moving average. There’s also a key declining channel forming with the resistance close to the $11.80 on the 4-hour charts for the LINK/USD pair. The LINK bearish pattern forms so it can trigger a sharp decline below the $11.50 support.

In the previous technical analysis, we saw a potential head and shoulder pattern for LINK with the resistance close to the $12.50 zone. The price forms the right shoulder near $12.50 and started another decline. There was a sharp decline after the price broke the neckline support of $11.60 and sparked another decline below the $11.50 level. There was a break below the 50% fib retracement level of the upward move from the $9.80 swing low to the $12.97 high.

There’s also a key declining channel forming with the resistance at $11.80 on the 4-hour charts of the pair. If there’s a downside break below the channel support of $10.85, there’s a risk of more losses. The next major support is near the $10.50 level below which the bears could aim for $10.20 support. If the price starts a corrective increase, it could climb above the $11.20 resistance with the first key resistance on the upside nearing the $11.40 level. The next major resistance on the upside is close to the $11.60 level and the channel trend line. The close above the $11.60 level could open the gates for another push at $12.00. the 4-hour MACD for the pair is gaining pace in the bearish zone while the RSI is well below the 50 levels. The major support levels for Chainlink are set at $10.85, $10.50, and $10.20. The major resistance levels are set at $11.20, $11.60, and $12.00.

As reported previously, If Bitcoin continues pushing higher, it could create tailwinds for other altcoins that help lead Chainlink higher in the upcoming days and weeks. The next key price level that it needs to surpass to post further gains is $12.00 because it was a previous resistance level that it was trying to flip into support. One LINK trader still noted that LINK could be poised for serious near-term downside stating that the recent weakness in Bitcoin could cause it to dive lower.