LINK/USD pair has dropped 11% in the last 24 hours and could drop to lows of $7.80 if bears take over
The price of ChainLink may fall below $10.00 and continue at a drop of $7.80 as suggested by the short-term technical framework of the token.
The outlook follows the LINK/USD pair falling over 11% in the last 24 hours. In doing so, the cryptomeda has broken below a rising wedge pattern and a key support area.
LINK/USD: Daily Action
ChainLink was traded at $11.69 in the last 24 hours. However, the collapse witnessed in the cryptomeda market has meant that increased downward pressure has caused its price to fall by $10.03.
Although the bulls rose to $10.36 at the time of writing, the collapse below the support pattern mentioned above means that it could fall to $7.80. This is the area around which the wedge pattern shown in the chart below began. It is also an area that provided great support as the price has recovered to highs of $12.93.
Currently, the Fibonacci retracement level of 50% of the rise from a minimum of $9.40 to a maximum of $12.93 provides additional support at $10.14. Below that, bulls will have the strength around the 61.8% Fibonacci retracement level at the low $9.40 swing.
If bulls maintain prices above $10.00, a break above the simple moving average of 100 days (per hour) at $11.09 may take a jump close to the main resistance area around $12. Once that barrier is eliminated, the LINK/USD pair may rise to highs of $12.83 and then try to eliminate resistance at $14.00.
As can be seen on the 4-hour chart above, the token price action was also broken below the lower limit of the rising channel. As soon as the LINK/USD pair broke below the 100 – SMA level ($11.38), the bears quickly pushed it to 50 – SMA ($11.36).
The downward momentum helped the bears‘ course of action as prices fell below two key support levels around $11.20 and $11.00. This was before further losses reduced the recent gains, leaving the bulls weak at around $10.50-$10.20.
The short term bearish outlook will be confirmed if LINK prices fall to lows of $9.40.