Chainlink (LINK) Price Poised for Next Bullish Wave: Analyst Predicts 2x Rally Based on This Setup
The crypto analyst known as @EasychartsTrade on X presents an outlook for Chainlink (LINK), suggesting it is poised for a bullish wave. According to the analyst, LINK is currently in the early stages of a bullish wave count, with multiple third waves forming, which are typically the most robust and prolonged movements in Elliott Wave Theory. This setup hints at strong upward momentum, potentially leading to a price rally.
The current price of LINK hovers around $17.50. The analyst drew out key Fibonacci retracement and extension levels, identifying potential resistance at $25.35 (38.2%), $30.12 (50%), and $40.55 (78.6%).
These levels serve as crucial benchmarks as LINK approaches a long-term target zone of $45 to $52, aligning with the neckline from its previous all-time high (ATH).
The price action is contained within a well-defined ascending channel, with the upper boundary closely matching the anticipated target range. This indicates that the $45 to $52 area may act as a significant resistance level in the medium term.
Although the chart does not display volume, the formation of third waves suggests an increase in buyer interest, confirmed by the presence of higher highs and higher lows, which indicate a bullish market structure.
For long-term investors, or “bag holders,” this setup is described as a “dream” scenario by the analyst. The optimistic projections signal that LINK could be well-positioned for further gains, making it an attractive hold for #Linkmarines.
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In considering potential scenarios, the analysis outlines a bullish continuation if LINK successfully breaks the 38.2% and 50% Fibonacci levels with strong volume. This breakout could lead to targets of $40.55 and ultimately the $45 to $52 range.
Conversely, a short-term pullback may occur if market sentiment weakens, possibly retesting lower support levels around $15. However, as long as the price remains above $10, the bullish structure is expected to hold.
The analysis shows that a drop below the lower ascending trendline or $10 would invalidate the bullish outlook.
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