Sohrab Khawas
With the overall trend in the market being volatile, the Uptober rally is slower than the anticipation of market leaders. Following the price hike in early October, the LINK price takes a step back to test lower levels.
Moreover, the long coming sideways track journey for Chainlink puts the LINK price prediction on an indecisive scale.
In a spiral down from the overhead resistance trendline, the LINK price action displays a breakout failure on the buyers’ part. With the intensive supply inflow keeping the trendline intact, Chainlink prices fall to the 50-day EMA within ten days.
Following the golden crossover, a retest to a 50-day EMA is a general trend in any asset class. However, the rise in selling spree warns of a bullish failure to find a solid footing to reclaim trend momentum.
On a positive note, the price action displays a cup and handle formation with the overhead trendline as the neckline. However, the reversal is crucial for the buyers to complete the bullish pattern.
Moreover, in the weekly chart, the LINK price action displays a strong bearish reversal from the resistance trendline. This warns of a sharp negative in the bearish channel. However, the recent early bullish reversal increases the likelihood of a new higher low within the channel.
Technical indicators:
EMA: The 50 and 200-day EMAs give a golden crossover and sustain a positive alignment.
RSI indicator: The daily RSI line displays a sharp downfall from the overbought boundary, reflecting a loss in bullish sentiments.
Will LINK Price Crash Within The Channel?
The LINK price action displays a strong bearish momentum, increasing with the market-wide correction gaining momentum. Moreover, to turn matters more bearish, the downtrend within the channel in Chainlink prices aligns with this correction phase.
Therefore, despite the possibility of a bullish reversal from the 50-day EMA, the chances are slim for buyers to reclaim trend control. If the buyers can bounce back, the uptrend will again face opposition from the overhead trendline. Nevertheless, the price may reach the $8 mark.
On the other hand, the rejection rally will find crucial support levels at the $7 and $6.50 marks.
