Chainlink: This pattern can shape LINK’s near-term trajectory

ambcrypto.com:

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.LINK

After sailing within the bounds of a side-channel for nearly three weeks, Chainlink’s [LINK] breakout was quick to register an up-channel (yellow) breakdown. This fall pierced through some critical price levels and found fresher multi-yearly lows.

Given the current market dynamics, the recent bearish engulfing candlestick could propel bearish tendencies in the near term. At press time, LINK was trading at $6.09.

Source: TradingView, LINK/USDT

The buyers upheld the $6.16-level for over 23 months. However, the bulls failed to defend this level as the bears went to great lengths during recent liquidations. The sellers pulled off a 43.7% drop from 10-13 June.

After dragging the alt to its two-year low on 13 June, the buyers finally found a recouping zone at the $5.45-mark. The bullish engulfing candlestick invoked the recent gains while marking the end of the red candle streaks.

With a bearish engulfing candlestick near the $6.88-resistance, the selling pressure seems to have renewed. A sustained fall below the basis line (green) of the Bollinger Bands (BB) could position LINK to a potential downside toward the $5.45-level before any bounce-back possibilities. Also, the fall below the Point of Control (POC, red) could propel an extended fall.

Source: TradingView, LINK/USDT

The Relative Strength Index (RSI) failed to breach the boundaries of its equilibrium for the last five days. After its recent bearish divergence with the price, it has depicted a bearish bias.

Also, the OBV did commensurate with the RSI’s outlook by bearishly diverging with the price. Furthermore, sellers have reaffirmed their