Chainlink Price Dives Amid Rising Wedge Pattern
Chainlink's price has been on a downward trend after reaching its key technical resistance area and forming a rising wedge pattern on the daily chart. This pattern, despite improving institutional and derivatives metrics, raises concerns of a bearish breakdown.
The LINK price fell from $8.7410 to $8.3820 over three consecutive sessions, but continued ETF inflows and lower exchange reserves provided support for the wider outlook.
Technical analysis suggests that Chainlink's price may be at risk of a strong bearish breakout, with the Relative Strength Index (RSI) pointing downwards towards the neutral point of 50. The token has also formed a risky rising wedge pattern, which could lead to further declines.
However, LINK's fundamentals remain strong, with American investors continuing their slow accumulation. Spot Chainlink ETFs have added over $2.83 million in inflows this week, bringing the monthly flows to over $4.39 million.