In spite of increased price volatility in the cryptocurrency market, the Chainlink (LINK) price has failed to break its important resistance level of $20. Furthermore, it has been constantly forming lower highs, indicating a strong bearish influence for this altcoin in the crypto space.
With a Year-to-Date (YTD) return of -22.07% and rising uncertainty in the marketplace, is this a good time to stack more LINK tokens to maximize profits during the upcoming months?
LINK Price Fails To Break Out Of Its Triangle Pattern
The Chainlink price has formed a descending triangle pattern in the 1D time frame and has continued trading within it since mid-May. Moreover, with the recent market volatility, the altcoin failed to break out of its trend pattern. This has resulted in this Ethereum-based token dropping toward its support level.
Despite recording a correction of 5.60% in the past day, this crypto token has surged 11.43% over the past week. This gives its investors a sign of relief. This surge further hints at a potential bullish reversal for the Chainlink token in the coming time.
The EMA 50-day has displayed a negative crossover in the 1D time frame. This indicates an increase in the selling pressure for the LINK price in the crypto market.
Further, the RSI indicator has recorded a sharp drop below the overbought range. Moreover, its average trendline records a high possibility of a bearish convergence in the LINK price chart. This highlights that the price may continue losing value this week.
Will Chainlink Go Up In 2024?
If the bulls break out of the resistance trend line of the triangle pattern, the LINK price will prepare to test its upper resistance of $14 in the coming time. Moreover, if the bulls hold the price above that level, this altcoin will prepare to head toward its upper high of $17 in September.
On the contrary, if the bears continue to overpower the bulls, the Chainlink price will retest its support level of $11. If the bulls fail to regain momentum at that point, the LINK crypto will further plunge toward its crucial support level of $8.
