The ChainLink (LINK) cryptocurrency is declining, following the downward resistance line since reaching a high on August 16. As long as the quotes do not break through this line, the dynamics of the coin is considered corrective.
Bullish Pattern Breakout
LINK has been falling in price since August 16, when it reached a high of $20.11. On August 21, the altcoin attempted to grow, forming a top at a high of $17.77. As a result, a descending high and a line of descending resistance appeared on the charts, along which the quotes have been declining since then.
At the time of writing, LINK was trading between the $10 support and the $13.30 resistance.
LINK chart from TradingView
Cryptocurrency Trader @TradingTank he posted a LINK chart on Twitter, where he notes the presence of an ascending triangle, which is traditionally considered a bullish continuation pattern.
Since the tweet, the price has broken through this triangle downwards and is already approaching the intermediate support of $11.40. The altcoin has made a bearish break of the bullish pattern, which increases the likelihood of a further retreat in the direction of the $10 support, which was mentioned above.
LINK chart from TradingView
Bearish momentum Development
Technical indicators on the daily charts do not yet give any reversal signals. The MACD, stochastic oscillator, and RSI are declining, with the latter failing to reach even the 50 level.
All this confirms the risk of a further retreat of the quotes to the support of $10.
LINK chart from TradingView
After reaching the above-mentioned high of $20.11, the LINK exchange rate went into correction mode, where it remains to this day. It is possible that the altcoin has already completed the formation of the A-B-C structure (black color on the chart below). However, it is still unclear whether this formation is part of a larger wave A within the correction, or whether the price has completely completed the correction and is starting an upward movement.
As long as the coin does not break the downward resistance line connecting the beginning of the correction and the top of wave B, we can not say with confidence about the beginning of a bullish move, especially since technical indicators give bearish signals.
LINK chart from TradingView
So, LINK is very likely to continue moving towards the $10 support, and the correction is most likely not over yet.
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