LINK Forms Bearish Pennant, Signals Potential Downward Movement
Chainlink (LINK) is showing bearish signals as it forms a pennant pattern, indicating a potential continuation of its downtrend. The price remains in consolidation, with sellers maintaining control. A breakdown from this pattern could lead to significant losses, putting key support levels under pressure.
Price Action Analysis
- LINK trading within a bearish pennant pattern suggests market indecision.
- Bulls and bears have not established firm control; price constrained by converging trendlines.
- Risk of breakdown high without increased buying pressure.
A breach below the pennant's lower boundary with strong volume may reinforce the bearish outlook, pushing LINK toward key support levels. Currently, LINK is trading below the 100-day Simple Moving Average (SMA), indicating significant resistance to upward movement.
Breakdown Targets
- If a breakdown occurs below $17.96, LINK could decline toward $15.
- Bulls defending these levels may initiate a rebound towards $19.87 resistance.
- A decisive move above $19.87 would suggest a recovery and further gains.
