- The LINK price shows a negative cycle gaining momentum in the falling channel pattern.
- The recent downfall forms a three-black crow pattern in the daily chart.
- With a bearish breakdown possibility on the cards, the LINK price may soon crash to the bottom support at $12.
With respect to the overall market correction, Chainlink’s price showcases a sharp reversal trend in motion as the sell-off picks up pace amongst altcoins. Further, the LINK price sirens off multiple technical signals that can ignite a severe correction phase.
As the lower high formations and the weakening bullish side trigger an intense correction, the sentiments are turning red. Amidst such gloomy conditions, the forecast for 2024 for Chainlink is optimistic. To know more on this, explore our LINK price prediction that suggests a rally beyond $20 in 2024.
Source – Tradingview
Following the bullish struggle to surpass $17, turning into a failure, the LINK price shows multiple bounce-backs from various supports to turn the tides. However, the extreme supply pressure has given the same result for the past few weeks.
With the recent reversal from the overhead trendline testing the 50-day EMA, Chainlink’s price is under serious pressure. Further, the 10% drop within four days leads to multiple intense bearish candles, forming a three-black crow pattern.
Currently, the LINK price trades at $14.39 with an intraday fall of 1.25%, forming a long-wick bear candle.
Technical indicators:
EMA: The declining market cap of Chainlink now rests at the 50-day EMA and struggles to find a strong footing. In case, the dynamic support from the EMA manages to bounce Chainlink higher, the altcoin could face the overhead resistance once again.
EMA indicator: The weakening bullish side warns of a bearish crossover in the MACD and signal lines. With the momentum indicator on the verge of signaling a trend reversal, the sideline traders await the EMA breakdown.
Will LINK Price Outlive The Bear Phase?
In recent days, the LINK price action has shown a quick drop in the bearish channel starting from the overhead trendline. This marks a quick downfall and warns of a channel breakdown possibility as the market sell-off gains traction.
In case the sellers manage to knock down the 50-day EMA, Chainlink may soon drop to the $12 mark. Under such conditions, the channel breakdown possibility will be most significant.
However, a reversal from the EMA can retest the trendline or the $17 mark.
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