Disclaimer: The findings of the following analysis are the authors’ sole opinions and should not be considered investment advice.

While the early June rally produced decent gains, bears quickly regained control of the short-term trend. So, Chainlink [LINK] has now been consolidated for nearly three weeks in the $5.45-$7.36 range.

With the price dropping below the 200 EMA (green), sellers have created a long-term bearish outlook.

Further, given the recent reversal of the Point of Control (POC, red), LINK could continue on its bearish track. At the time of writing, LINK was trading at $6.1.

LINK 4 Hour Chart

Source: TradingView, LINK/USDT

After an expected reversal from the $7.3 ceiling, LINK’s descent turned into a short-term wedge-falling setup. The sellers drove a 21% drop from June 26 to 30.

The past 24 hours marked a decent buy attempt as the alt broke above its reversal pattern. But with the POC standing firm, the price action struggled to jump above the $6.3 level.

Additionally, LINK saw a pattern of a falling star exchanger after falling out of his POC. The bears thus strengthened the short-term selling advantage. Furthermore, recent sales volume was slightly higher than purchase volume. So the buyers had to step up their pressure to retest the POC.

Any drop below the $5.9 mark could expose the alt to an 8% decline towards the $5.45 support. An immediate recovery would likely lead to a squeeze phase near the POC in the $6.3 – $6.2 range.

rode

Source: TradingView, LINK/USDT

The Relative Strength Index (RSI) has not crossed the limits of its equilibrium for the past five days. After its recent bearish divergence with price, it has visibly displayed a bearish bias.

Also, the Aroon up (yellow) indicator matched the bearish outlook by staying at the 0% mark. A gradual jump above the 30% level could help buyers challenge the POC. However, the ADX showed a significantly weak directional trend for the alt.

Conclusion

Given the falling star exchanger that triggered a reversal in the POC, LINK could see a bearish pull in the near term. Any drop below $5.9 could trigger a further downfall. The objectives would remain the same as above.

Any bearish void could see a relatively slow phase near the POC zone. Finally, an overall analysis of the market sentiment becomes essential to complement the technical factors in order to take a profitable move.



This post Chainlink: Effects of the interruption of this pattern on the technicalities of LINK could be…

was published first on https://ambcrypto.com/chainlink-effects-of-this-patterns-break-on-links-technicals-could-be/

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