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Chainlink (LINK) Forms Head and Shoulders Pattern, Further Drops Could Hit $10-11
- Chainlink (LINK) is forming a head and shoulders pattern on the daily chart, indicating a potential bearish move.
- A break below the neckline could lead to a downward correction towards the $10-$11 support area.
- Short-term indicators like RSI and MACD are bearish, supporting the potential downside for LINK.
- Alpha Crypto Signal identifies the bearish formation on LINK's daily chart, suggesting a reversal from uptrend to downtrend.
- The head and shoulders pattern involves higher peaks forming shoulders and a head, potentially signaling a change in trend.
- Analysts warn of a bearish continuation if LINK breaks below the neckline with strong selling volume.
- The support level around $10 to $11 is crucial, and a breach could lead to a significant downward move.
- Monitoring the neckline is advised to assess potential short-selling opportunities.
- The daily chart displays the left shoulder in mid-April, the head in early May, and the right shoulder in June, with the neckline being tested.
- The short-term 4-hour chart shows bearish sentiment with RSI in oversold territory and MACD indicating downward momentum.
- Weak volume and lack of significant buying pressure further support the bearish outlook for LINK.
- Analysts recommend vigilance around the neckline for confirmation of a breakdown and potential trading opportunities.
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