Chainlink (LINK) has surged over 30%, attracting interest from traders analyzing its next move.
Crypto analyst Hov (@HovWaves) highlighted this rally, pointing to key support and resistance levels that could determine the coin’s trajectory. The market now watches for a potential retracement, which will signal whether the uptrend continues or if the price remains in a corrective phase. With Fibonacci levels providing insights, traders are debating if the recent low is in or if further downside is possible.
$LINK
— Hov (@HovWaves) January 16, 2025
Our Chainlink entry is now up over 30% given well in advance (threaded)
Now the next step is to look for that 3 waved retrace into support
That support is the key to whether this move continues higher(new highs) or we're still corrective
What do you think. Is the low… pic.twitter.com/cB6IwTxGVW
What you'll learn 👉
Chainlink’s Rally and Elliott Wave Structure
Hov noted that LINK’s recent surge followed a clear five-wave Elliott structure, signaling strong bullish momentum.
The initial impulsive move led to a retracement phase, with the price bouncing from key Fibonacci support levels at $19.90 (0.5 retracement) and $17.70 (0.618 retracement). These levels have acted as strong demand zones, suggesting a healthy pullback before a potential next leg higher.
According to Hov’s chart analysis, LINK could be entering a new impulsive wave. The key to confirming this scenario lies in how the price interacts with support zones. If the asset maintains its position above $19.90, it could indicate further upside. However, a break below $17.70 might suggest an extended corrective phase before another attempt at higher levels.
Read also: Analyst Predicts a Bullish Wave for Cardano (ADA) – Here’s Why
Key Support and Resistance Levels in Play
Market participants are closely watching two main levels to determine $LINK’s next move. The first is the support zone between $19.90 and $17.70, where a strong bounce could confirm bullish continuation.
If buyers defend these levels, LINK may push higher, targeting the resistance range between $26 and $29. A breakout beyond this zone would likely validate an impulsive wave structure, setting the stage for a move toward $38-$40.
Conversely, losing support at $17.70 could shift momentum in favor of bears. In such a scenario, the price may revisit lower accumulation zones, where $LINK previously found strong demand in the $7-$10 range. This would indicate that the corrective phase is not yet over.
At publication, LINK trades around $24.14 according to CoinGecko. Its daily trading volume has reached $1.4 billion gaining 11.36% in the past day and 20.66% over the last week.
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