• Chainlink price narrows beneath a descending channel after hitting a barrier at $17.50.
• LINK/USD could fall further if the initial support at the 50% Fibonacci level caves.

Chainlink (LINK-X) is holding firmly above a confluence formed by the 200 SMA in the 1-hour range and the 50% Fibonacci retracement level of the last swing high of $17.74 to a swing low $13.49. Over the last few days, LINK traded a lower high pattern, especially with the upside capped under a descending trendline.

According to the prevailing technical picture, consolidation is likely to take precedence in the near term. The RSI has embraced support at 40 while the leveling motion confirms the sideways trading. Initial support at the above-mentioned confluence ($15.63) appears to have the muscle to keep the price from diving below $15.

On the other hand, the position of the MACD suggests that selling pressure is intensifying. In addition, the bearish divergence from the MACD could encourage more sellers to join the market.

On a wider scope, the monthly chart is printing a bearish picture, bringing to light a sell signal. In other words, LINK is leaning towards more losses as opposed to a reversal. A number of resistance zones including $16, $16.50 and $17.50 will make recovery an uphill task.

LINK/USD hourly chart