Could Sellers Trigger a Chainlink Price Crash This Week?

Could Sellers Trigger a Chainlink Price Crash This Week?

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Chainlink Price Faces Bearish Pressure

Sellers ignite a crash this week as Chainlink’s price struggles to maintain its bullish momentum. The recent downfall has formed a three-black crow pattern in the daily chart, indicating a potential bearish breakdown. The LINK price may soon crash to the bottom support at $12, as the overall market correction continues to impact altcoins.

Multiple technical signals suggest a severe correction phase for Chainlink. Despite the gloomy conditions, the forecast for 2024 remains optimistic, with a potential rally beyond $20. For more information, explore our LINK price prediction.

Technical Indicators Show Weakening Bullish Side

The declining market cap of Chainlink now rests at the 50-day EMA, struggling to find a strong footing. The recent reversal from the overhead trendline testing the 50-day EMA has put Chainlink’s price under serious pressure. The 10% drop within four days has led to multiple intense bearish candles, forming a three-black crow pattern.

The EMA indicator shows a weakening bullish side, warning of a bearish crossover in the MACD and signal lines. The momentum indicator is on the verge of signaling a trend reversal, causing sideline traders to await the EMA breakdown.

Possible Channel Breakdown for Chainlink Price

In recent days, the LINK price action has shown a quick drop in the bearish channel starting from the overhead trendline. This marks a quick downfall and warns of a channel breakdown possibility as the market sell-off gains traction.

If sellers manage to knock down the 50-day EMA, Chainlink may soon drop to the $12 mark. A reversal from the EMA could retest the trendline or the $17 mark. However, the channel breakdown possibility will be most significant under such conditions.

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