Chainlink Coin Price Forms Symmetrical Triangle Pattern
The price of the Chainlink coin has formed a symmetrical triangle pattern, which is considered neutral. This pattern can either be a continuation of the previous trend or a reversal, depending on the direction of the breakout. Currently, the price of LINK trades at $6.9 and continues to oscillate within the triangle.
Implications of Symmetrical Triangle Pattern
A breakout from either side of the pattern’s trendline will free the coin price from its current consolidation. The daily trading volume of LINK stands at $1.7 Billion, reflecting a 207% increase. Despite the recovery, the price of the coin reached a high of $7.5, marking a 34.4% increase since January 1st.
Formation of Symmetrical Triangle
However, with growing uncertainty, the price action has become stagnant and shaped into a symmetrical triangle pattern. This pattern occurs when prices move within two converging trendlines that form a triangle. These trendlines are drawn by connecting peaks and troughs and signal a potential breakout in price movement.
Daily Candle Analysis
Today, the Chainlink coin showed another failed attempt to break the lower support trendline. The rejection of the lower price, shown in the daily candle, indicates that buyers continue to defend this support, and the consolidation phase may continue for a few more sessions. Nevertheless, the price action has nearly reached the peak of the triangle, suggesting that the breakout is imminent.
Outlook for the Future
Considering the ongoing bearish sentiment in the market, the LINK price is more likely to break the lower trendline. A daily candle closing below the support trendline will increase selling pressure and trigger a new correction phase, potentially causing the price to fall 8.85% to $6.3. Conversely, a breakout above the overhead trendline will resume the prior recovery.