LINK/USD dips 4.15% to trade around $15.60

By James Gray·2 September 2020·1 min read

Key Points

ChainLink hit $17 on Tuesday before retreating to $15.50, down 4.15% over the previous day.
The token had climbed 3% to those $17 highs on Monday, but momentum stalled.
Technical analysis suggests the

ChainLink hit $17 on Tuesday before retreating to $15.50, down 4.15% over the previous day. The token had climbed 3% to those $17 highs on Monday, but momentum stalled. Technical analysis suggests the coin may struggle to hold its ground. One analyst flagged the possibility of a 50% drop to $8 if current support levels break.

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The larger picture remains bullish despite recent weakness. ChainLink reached $20 in mid-August, a parabolic move that pushed it to the fifth-largest cryptocurrency. The token has retraced since then, but trades above its late-July price of $7.20, up more than 100% in just weeks.

On the charts, LINK/USD broke through a symmetrical triangle pattern on the way to September 1's peak, but the move appears fragile. The price has encountered the 50-day and 200-day moving averages on shorter timeframes, and a bearish divergence showed up on the 2-hour view. Two bearish engulfing patterns formed as well. Buyers face resistance near $17.55.

At $15.69, the coin needs a close above $16.50 today to keep bulls in control. A sharp rejection there could trigger selling, especially with broader market uncertainty. If that happens, LINK could slide to $12-$14.50. A breakdown past those zones points to $8 as the next significant floor.

The relative strength index sits in bearish territory, though there's a hint of divergence on the 2-hour chart. If bulls defend $15.50, they can push the price back above $17 and toward $20. Weakening trading volume over the past day clouds that outlook.

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