Chainlink (LINK) head and shoulders formation on 4-hour chart

There is a head-and-shoulders formation in the Chainlink (LINK)/USD parity, which is forming in the 4-hour time frame and has a very high possibility of a downward break. One or two 4-hour candles closing below $18.30 will confirm the breakout and a pullback may occur to $16.70.

Additionally, the target of the formation, $16.70, has been a strong resistance for about 3 months. It has broken up with high volume in the past few days. This level is ideal for consolidating again.