Chainlink Drops 5% Amid Triangle Pattern Resistance

Chainlink, a prominent cryptocurrency, has been navigating within a triangle pattern since late 2024. The LINK price has been compressed between a descending resistance line from the highs near $30 and a rising support trendline from the lows around $8. This configuration has formed a narrowing triangle, within which the price has oscillated for several months.

Recently, Chainlink exhibited bullish momentum over the past two days. However, the current candle indicates signs of buyer exhaustion, with LINK dropping about 5%. This suggests that sellers are exerting pressure at the resistance level. If this bearish trend persists, the Chainlink price could decline toward the lower trendline of the triangle, resulting in approximately a 15% drop from its current trading price of around $13.

Despite this short-term weakness, the support line has proven reliable since August 2024. Historically, whenever the price approached this trendline, it encountered strong buying interest that propelled it back up. Therefore, there is a reasonable chance that the support could hold again if the price drops to that level.

The Relative Strength Index (RSI) for LINK is currently around 46, indicating neutral momentum. This means LINK is neither overbought nor oversold, and its price could move in either direction depending on which side of the triangle breaks first.

Analyst Ali highlighted a critical resistance level for Chainlink at $15.30. If the LINK price can break and close above this resistance, it would signal the potential start of a new rally. Such a breakout could pave the way for Chainlink to set higher highs beyond the triangle pattern and possibly return to its previous peaks. This level aligns with the descending trendline that has been capping LINK’s price since it reached near $30. Until there is a decisive move above this resistance, the price is likely to continue trading sideways within the triangle.