Chainlink Price Analysis: LINK/USD free-falls to $16, wedge pattern reversal in the offing

  • Chainlink hits highs above $17.50 on the weekend but bearish pressure took precedence leading to the ongoing breakdown.
  • LINK/USD could resume the uptrend, especially if support at $16.00 holds and the wedge pattern breakout comes into the picture.

Chainlink hit a high of $17.73 over the weekend after recovery from Friday’s support at $14. There was a break above the 50 SMA and the 100 SMA which paved the way for gains past the resistance turned support at $15. Bulls propelled the price above other multiple barriers including $16, $16.5, and $17.50.

Meanwhile, LINK/USD is exchanging hands at $16.13. Attempts to clear the resistance at the 50 SMA at $16.70. Looking at the RSI, the crypto is likely to continue falling. Support is expected at $16.00 but if the bearish leg continues, the 100 SMA will come in handy at $15.82. The MACD continues to illustrate the bearish pressure even more as it crosses below the midline.

On the flip side, the formation of a falling wedge pattern hints that a reversal is likely to take place in the short term, especially if support at $16 holds. Resistance is expected at $16.50, $17 and $17.5. For now, holding above $16 is key for the next run-up to $17.50 and higher levels above $20.

LINK/USD 1-hour chart

LINK/USD price chart

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