Chainlink: Bearish Pattern and Divergence 4H (Apr. 27)

X FORCE GLOBAL ANALYSIS:


In this analysis, we explore the extremely bearish technicals demonstrated in Chainlink's (LINK) short term charts.

Technical Analysis

- The first thing we can spot is a bearish divergence, in which prices create higher highs and indicators create lower highs
- The Relative Strength Index (RSI) shows a clear lack in strength with lower highs
- The Moving Average Convergence Divergence (MACD) also shows lack of momentum with lower highs
- We can see a textbook ascending wedge pattern, which is interpreted as a bearish reversal pattern in an uptrend
- Counting Elliott Triangle Waves (ABCDE), we can see that wave E has completed its formation, and we can expect a breakdown
- Bollinger bands are narrowing, which is a sign of a potentially big move.

What We Believe

Based on the bearish technicals suggested, we believe that Chainlink's bearish probabilities are extremely high for the immediate term.

Trade Safe.