Chainlink (LINK) Forms Head and Shoulders Pattern, Further Drops Could Hit $10-11

• LINK is developing a typical head and shoulders formation on the daily chart, which is an indication of a possible bearish move.
• A valid break of the neckline may see a downward correction to the area of the support located between $10 and $11.
• The short-term indicators of RSI and MACD trends are also bearish, and this supports downside risks for LINK.

The Alpha Crypto Signal has highlighted that Chainlink (LINK) is displaying what may be regarded as a bearish formation on the daily chart named the head and shoulders pattern. This kind of pattern is often identified as an indicator of a potential reversal of an uptrend to the downtrend. 

In this setup, the price enters a higher peak (left shoulder), then a higher peak (head) and again a lower peak (right shoulder). This is in the form of an outline resembling the shoulders and the head of an individual.