Chainlink Price Forecast: LINK is at risk of a 24% correction
- Chainlink price was unable to hold the lower trendline of a symmetrical triangle.
- LINK has been trading heavy over the last two days.
- The $25.70 support is critical for the bullish thesis in the short-term.
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Chainlink price has had a difficult time trying to slice through the $31.50 resistance barrier over the past month. But the most recent rejection could have serious ramifications.
Chainlink price affected by magnet effect
After peaking at a high of $31.50 on March 9, Chainlink price took an 18% nosedive below the symmetrical triangle’s lower trendline at $27.60. LINK continues to trade below this crucial price hurdle on the 4-hour chart.
The magnet effect of the triangle’s lower trendline is keeping Chainlink price from plummeting. If the effect breaks, LINK will likely quickly drop to the March 5 low at $25.70. A lack of buying pressure around this level will leave the bears the opportunity to drive LINK down to the February low at $21.00.
Such a significant downswing would represent a nearly 24% correction from current prices.
LINK/USD 4-hour chart
Nonetheless, if LINK bulls can take command around $25.70 and push prices above the symmetrical triangle’s upper trendline, there is ample room to rally. Resistance would materialize at the all-time high at $37.00, followed by the topside trendline starting in June 2019 and passing through the August 2020 high.
Author
Sheldon McIntyre, CMT
Independent Analyst
Sheldon has 24 years of investment experience holding various positions in companies based in the United States and Chile. His core competencies include BRIC and G-10 equity markets, swing and position trading and technical analysis.
