Chainlink's Technical Setup Points Lower Amid Mixed Signals

Chainlink's recent price action has been marked by mixed signals, with the geopolitical situation and whale accumulation contributing to the uncertainty. Despite these crosscurrents, an analyst believes that the technical picture is straightforward, with the LINK price expanding lower.

The 'Power of 3' setup, identified by trader Sjuul from AltCryptoGems, suggests that the price will continue to move lower. On the 4-hour chart, the price has been trapped in a range between $9.20 and $8.00, with the recent breakout above resistance turning into a classic deviation.

The rejection at resistance marks the manipulation phase in the inverted power of 3 model, and the structure has since flipped, with downside expansion becoming the higher-probability path. The LINK price is currently moving inside the green expansion area on the chart, drifting closer to the $8.00 support level.