Chainlink Price Forecast: LINK breaks below ascending triangle

Chainlink fell after encountering heavy resistance.
The bears aim to take LINK down to $11.

Chainlink rose from $10.25 on November 5 to $13.45 on November 6 before dropping back to $11.75 the next day. As of writing, LINK is in a pretty precarious position that could define its price action in the days to come.

Chainlink breaks below ascending triangle

Chainlink has been trending in the 4-hour chart since November 7. LINK has been on an upswing, with the buyers aiming for the $13.45 resistance level. However, the bears managed to take control and dip the price below the triangle formation. As per technical analysis, the price target for the sellers is around $11.

LINK/USD 4-hour chart

IntoTheBlock’s In/Out of the Money Around Price (IOMAP) helps us visualize strong support and resistance levels. The IOMAP shows us a strong resistance barrier between $12.50 to $13.25. On the downside, the decentralized oracle network has a healthy support wall at $11.25. A break below that takes LINK to $10.85. This validates our predetermined price target of $11.

LINK IOMAP

The number of addresses entering the network over the last month reached a high of 3,080 on November 7. Since then, this number dipped to 2,210, before rising to 2,440. This is a positive sign as it shows that the network is growing.

LINK addresses

If the buyers take back control, they will take the price up to $12.50 before encountering strong resistance. If the bears remain in control, then one can LINK to drop till the $11-mark.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.