Sheldon McIntyre, CMT
Independent Analyst
- 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.
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.
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