As LINK trends lower and leave behind a trail of lower highs and lower lows, the decentralized finance token is forming a Descending Channel.
LINK trade setup hints at a further breakdown. Source: TradingView.com
The area between the green trendlines has been where the LINK downtrend is taking place since August 15. After posting a humongous 1,500 percent price rally, the token corrected lower by as much as 65 percent from its yearly top at $20.62.
LINK’s downside move also saw a periodic weakness in its buying strength, according to its daily Relative Strength Index that – too – formed lower highs and lower lows. The sync between the price and the momentum showed a brewing bearish trend in the market.
That leaves LINK possibilities of continuing its downside move, with the Ascending Channel serving as an indicator for traders to identify the token’s rebound and pullback levels. Based on its recent performance, LINK/USD is now pulling back after testing the upper trendline of the…