The Chainlink (LINK) Price Correction: Will It Break Out of the Symmetrical Triangle?
The LINK price has experienced a significant decrease since reaching its yearly high on Nov. 11. The price movement has been contained within a symmetrical triangle pattern, and the question now is whether LINK will break out from it.
Consecutive Bearish Candlesticks Indicate a Downtrend
An analysis of the weekly time frame shows that the LINK price has been increasing since June, with a higher low in September. However, after reaching a new yearly high of $16.60 on Nov. 11, the price has been falling and creating successive bearish candlesticks.
Relative Strength Index (RSI) Signals Mixed Sentiment
The Relative Strength Index (RSI) is a momentum indicator used by traders to determine whether a market is overbought or oversold. Currently, the RSI reading for LINK is above 50 but falling, indicating mixed sentiment among traders.
Analysts’ Views on the Future Trend
Cryptocurrency traders and analysts have conflicting views on the future trend of LINK. The CryptoBull believes that the release of LINK staking v0.2 will increase demand and lead to a rise in price. On the other hand, CryptoPoseidonn is skeptical about the bullish trend and predicts that LINK will eventually return to $1. RektCapital also suggests a bearish trend based on LINK’s failure to break out from a long-term resistance area at $15.
LINK Price Prediction: Correction Over or Bullish Breakout?
While the weekly time frame readings are mixed, the daily timeframe provides a more bullish outlook. The Elliott Wave theory and the RSI indicate that LINK is nearing the end of wave four and may soon break out from the triangle, starting wave five. The potential target for wave five is $19, representing a 30% increase from the current price. However, if LINK breaks down from the triangle, a 25% decrease to the channel’s support trend line can be expected.
Hot Take: LINK Price Correction Signals Uncertainty
The recent correction in the Chainlink (LINK) price has raised questions about its future direction. While some analysts predict a bullish breakout, others remain skeptical and anticipate further downside. The symmetrical triangle pattern and the RSI readings add to the uncertainty surrounding LINK’s price movement. Traders and investors should closely monitor these key indicators to make informed decisions about their LINK holdings.
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