Chainlink’s LINK token didn’t stay immune to the market’s downturn this week. The price is now trading below $11 after a 6% plunge during this period.
So, what’s next for LINK? It’s important to note that LINK is trading way below its $21.75 yearly high set in mid-March this year.
In late May, LINK had another price spike to around the $18.5 area and ever since, we haven’t seen much price action here.
“MarketIntel” trader, who often posts trading ideas on TradingView, shared an interesting Chainlink chart today.
What you'll learn 👉
Elliott Wave Analysis
According to the trader’s chart, ChainLink appears to have completed a corrective wave pattern (labeled as wave 2) and might be starting a new impulsive wave (wave 3). The corrective structure leading to wave 2 seems to be a complex correction with a [w], [x], [y] pattern, indicating a double zigzag correction.
The chart highlights key Fibonacci retracement levels, with the lower boundary at 78.6% (approximately $8.21) and the upper boundary at 61.8% (approximately $10.90). LINK’s price has recently broken above this zone, suggesting a potential bullish trend.
Read also: The Last Time This Happened MATIC Price Pumped 600% as Polygon’s Upgrade Is Now Days Away
Chainlink Price Targets and Resistance Levels
The next significant target according to the analysis is $20.85, which is likely the next resistance level where wave 3 might face challenges. This level is marked by a green horizontal line on the chart.
If the bullish momentum continues, the trader projects a potential move towards the $28.00 to $32.00 range (almost 200% from the current levels), as indicated by the green arrow on the chart.
Doge2014 raises 450K in days celebrating Dogecoin. Make potentially big profits and get in on exclusive airdrop!
Show more +It’s worth noting that the 61.8% Fibonacci level at $10.90 has been crossed, potentially signaling the end of the correction phase. The 78.6% level at $8.21 could serve as strong support if there’s a deeper retracement.
The trader suggests that while the overall trend appears bullish, there’s a possibility of a short-term retracement back into the turquoise target zone. However, the bullish outlook remains intact as long as the lower boundary of this zone holds.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
