Chainlink (LINK) started a sharp decline after forming a head and shoulders pattern (as discussed in the previous analysis). The bears are gaining strength and aiming a test of $10.20.
- Chainlink token price started a fresh decline after it failed to clear the $12.50 resistance against the US dollar.
- The price is now trading below $11.20 and the 100 simple moving average (4-hours).
- There is a key declining channel forming with resistance near $11.80 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
- A head and shoulders pattern triggered a sharp decline below the $11.50 support.
Chainlink (LINK) Price Dives 10%
In my last technical analysis, we saw a potential head and shoulders pattern for chainlink (LINK) with resistance near the $12.50 zone. The price did form the right shoulder near $12.50 and started a fresh decline (unlike bitcoin).
There was a sharp decline after the price broke the neckline support zone at $11.60. It sparked a sharp decline below the $11.50 and $11.40 support levels. There was a break below the 50% Fib retracement level of the upward move from the $9.80 swing low to $12.97 high.
The price even settled below the $11.20 support and the 100 simple moving average (4-hours). It is now trading just below the $11.00 support level and testing the 61.8% Fib retracement level of the upward move from the $9.80 swing low to $12.97 high.
<img alt="Chainlink (LINK) Price" class="alignnone size-full wp-image-448369" data-lazyloaded="1" data-sizes="(max-width: 1942px) 100vw, 1942px" data-src="https://www.cryptotelegraph.com/wp-content/uploads/2020/11/Chainlink-LINK-7-57.png"