Chainlink (LINK) has been on a slide since hitting a yearly high of around $27.7 in August. A chart from Elliott Waves Academy, a crypto analysis page with over 12,000 followers on X, suggests the trend might not be over yet. On the 4-hour chart, the setup still looks bearish, with possible support showing up near $20.22.
According to Elliott Waves Academy, LINK’s drop from $27.7 to $21.87 followed a five-wave decline — a typical bearish pattern. After that, the price bounced back in what they see as a corrective move, labeled as wave (2) or (B).
That bounce climbed inside an upward channel but didn’t break out strongly. Now, the chart points to another leg down, with $20.22 as the target zone if the selling continues.
Signs That Would Confirm More Selling
The analyst notes two key signals that would confirm the bearish case:
- If LINK fails to push back above its recent corrective highs.
- If price breaks below $21.87 and keeps sliding.
In that case, sellers would stay in control, making a test of $20.22 much more likely.
The rebound after the $21.87 low has the shape of a corrective move, not the start of a new uptrend. The chart even shows smaller waves inside that bounce, which strengthens the bearish view.
A break below the bounce channel is another clue that the rally was short-lived. That’s why Elliott Waves Academy expects the next leg lower — shown on the chart as a yellow line — to reach toward the $20.22 level.
What to Watch in the Short Term
In the immediate term, LINK might still try another small bounce. But for the bigger picture, two scenarios matter:
- If LINK can climb back above the corrective high, the bearish case weakens.
- If it fails and breaks recent support, chances of seeing $20.22 grow stronger.
Elliott Waves Academy frames this as the higher-probability outcome, though not guaranteed. Markets can always change if price action proves the wave counts wrong.
Read Also: Is This Where Pendle Price Bottoms Out Before the Next Rally?
Right now, the chart suggests Chainlink is leaning bearish, with $20.22 as the key level to watch. Whether LINK holds its ground or slides lower will likely be decided in the next few sessions.
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