Wedge Pattern could Lead LINK price below to $5

The Chainlink (LINK) price action shows a later walk within a falling wedge pattern. This range is stretched from $9.32 to $5.5 and has held the coin for around seven weeks. With the coin chart projecting a reversal sign at the resistance trendline, the altcoin may breach the $5 mark. 

Key points: 

The LINK price has tumbled 12% in the past two days.
A bullish breakout from the wedge pattern may give a first sign of  recovery.
The intraday trading volume in the LINK token is $600.2 Million, indicating a 42% gain.

Source- tradingview

The LINK/USDT technical chart reflects a texted book example of a falling wedge pattern in the daily time frame chart. Providing multiple retests to the pattern’s limiting barriers, the altcoin has been falling for a straight seven months, marking a low of $5.5.

Furthermore, over the past seven weeks, the $5.5 support has prevented sellers from reaching a new lower low and has encouraged more encounters with the overhead trendline. Today, the LINK price is up by 2%, but the higher price rejection candle attached to the daily candle indicates overhead supply pressure. 

If this selling pressure persists, the sellers may trigger another bear cycle within this pattern, which could pull the LINK price below the $5 mark. 

On a contrary note, the falling wedge is a bullish reversal pattern and should eventually bolster the altcoin to breach the resistance trendline. This potential breakout could bring a genuine recovery rally for LINK holders. 

Technical Indicator

ADX indicator: a drastic fall in daily-ADX slope in response to the consolidation phase in price action reflects a loss of bearish momentum. This indicates the buyers are wrestling for trend control, which supports the breakout theory. 

Bollinger Band indicator: the coin price trading below the indicator’s midline suggests the sellers still hold an upper hand over the buyers. Moreover, midline resistance is currently providing dynamic resistance to coin buyers. 

Resistance levels- $7.5, $9.3
Support levels are $5.5 and $5