Chainlink (LINK) price sinks, at risk of breaking yearly low

chainlink (link) worth Trading near the support line of the corrective pattern. This could trigger a breakdown of 50%.

Chainlink price has been trading within a sideways range since May 2022. The average price area of ​​support is $6, while resistance is at $9.30. Currently, LINK is trading very close to the price support area. Unlike many other coins in the crypto market, the price of LINK token is above its May low.

It is noteworthy that Chainlink price did not close above the resistance or below the support.

Also, the weekly RSI has generated a bullish divergence and its trend line is still intact. As a result, LINK Coin price closes above the top of the range or below the bottom, will determine the direction of the future trend.

In case of a breakdown, the next support will be at $4.

The price action on the daily time frame is showing a short-term ascending parallel channel, which is considered a corrective pattern. In the last 24 hours, Chainlink price declined slightly and reached the support line of the channel. This caused the RSI to test its bullish divergence trend line (green line) for the fourth time.

A breakdown of the channel support line would be highly bearish, as it would also lead to a breakdown in the RSI and the long-term $6 area. As a result, if this happens, LINK price is expected to drop to $4.

Due to the readings from the daily time frame, a bearish Chainlink price prediction is more likely.

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