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.
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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.
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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.
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