Chainlink Price Analysis: LINK/USD free-falls to $16, wedge pattern reversal in the offing
|- Chainlink hits highs above $17.50 on the weekend but bearish pressure took precedence leading to the ongoing breakdown.
- LINK/USD could resume the uptrend, especially if support at $16.00 holds and the wedge pattern breakout comes into the picture.
Chainlink hit a high of $17.73 over the weekend after recovery from Friday’s support at $14. There was a break above the 50 SMA and the 100 SMA which paved the way for gains past the resistance turned support at $15. Bulls propelled the price above other multiple barriers including $16, $16.5, and $17.50.
Meanwhile, LINK/USD is exchanging hands at $16.13. Attempts to clear the resistance at the 50 SMA at $16.70. Looking at the RSI, the crypto is likely to continue falling. Support is expected at $16.00 but if the bearish leg continues, the 100 SMA will come in handy at $15.82. The MACD continues to illustrate the bearish pressure even more as it crosses below the midline.
On the flip side, the formation of a falling wedge pattern hints that a reversal is likely to take place in the short term, especially if support at $16 holds. Resistance is expected at $16.50, $17 and $17.5. For now, holding above $16 is key for the next run-up to $17.50 and higher levels above $20.
LINK/USD 1-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.