Chainlink Price Prediction: This is how LINK’s slippery slope can be countered

Saif Naqvi
Source: thedailyhodl

Chainlink’s price was trapped within a bearish pennant on the 4-hour time frame. If the pattern is not invalidated over the next 24 hours, bears can tear into the setup and force a damaging sell-off next week.

Source: TradingView

Chainlink bulls had their back against the wall after a bearish pennant was spotted on the lesser time frame. However, buyers were responding appropriately to the pressure by setting up a 10% hike over the last 24 hours. From here, a 4-hour candle above $17 would invalidate LINK’s chain of lower highs and negate the chances of a breakdown. Should Bitcoin rally above $38K before the weekend ends, trading inflows into LINK’s market would even help carve a path to the 61.8% Fibonacci level.

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On the flip side, a bearish narrative would be intact if LINK rebounds from the upper trendline and heads back to $15. Its daily chart was a short-traders paradise, with LINK trading below its daily 20, 50, and 200 SMA’s (not shown). If a breakdown extends below $13-support, losses could carry all the way to $8.73 in a worst-case outcome.


A healthy 4-hour RSI was a positive sign as LINK approached the point of invalidation. An RSI reading above 55 generally creates optimism amongst bullish traders who hunt for such signals.


However, the fact that the volume oscillator fell sharply below the half-line was concerning. This meant that an upwards breakout was most likely be rejected at near-term resistance areas due to the lack of good buy volumes.


LINK’s rally had to extend beyond the 38.2% Fibonacci level to cancel out a bearish pennant setup. Having said that, an upwards breakout would go begging if the volume oscillator does not climb above its half-line.