Chainlink (LINK) Eyes Major Breakout After 75 Days of Price Correction

Key Takeaways

• A breakout from the corrective structure has occurred.
• The Fibonacci extension targets a price above $17.
• Bullish RSI divergence has been confirmed.
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Chainlink (LINK) has been in a prolonged corrective phase but recently showed signs of reversal as it rebounded from a significant support zone.

The 4-hour chart suggests completing a WXY corrective structure, while the 1-hour chart outlines a potential impulsive wave count, forecasting a short-term rally.

In the coming days, Fibonacci retracement and extension levels offer critical guidance for key price zones.

LINK Price Analysis

On the 4-hour chart, LINK has completed a clear WXY corrective structure, with the final wave (e) likely marking the low near $14.50 on Feb 25.

The price found strong support at the 0.786 Fibonacci retracement level of $14.53 and is currently rebounding.

This suggests the completion of the correction that lasted since its $30.80 made on Dec. 16.

A key descending trendline, which has acted as resistance since the $30.80 high, remains a crucial barrier.

A decisive break above this level, alongside the 0.5 Fibonacci retracement at $20.45, would signal a stronger trend reversal.

The Relative Strength Index (RSI) on the 4-hour chart was in oversold territory and has now rebounded, confirming bullish momentum.

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The current price action aligns with a developing Elliott Wave structure. If this is the beginning of a new impulse wave, LINK could be in the early stages of a five-wave cycle.

The first critical resistance to break is at $18.01 (0.618 Fibonacci retracement), which would further validate the bullish outlook.

Until then, LINK remains in a recovery phase, and some caution is required.

LINK Price Prediction

Looking at the 1-hour chart, the short-term wave count suggests that LINK has begun an impulsive structure, potentially forming wave (iii) of a five-wave sequence.

A breakout above $16.10 (1.0 Fibonacci extension) would likely confirm this scenario, leading to further upside targets.

The immediate structure indicates that wave (i) was completed at around $15.40, with wave (ii) finding support at $14.78.

The anticipated wave (iii) could extend towards the 1.618 Fibonacci extension at $16.90, with a potential pullback for wave (iv) before a final move higher in wave (v).

If momentum sustains, the projected completion of wave (v) could take LINK to the 2.0 Fibonacci extension near $17.40.

However, failure to maintain above $14.78 (wave ii low) would invalidate this count and signal a deeper correction.

Additionally, RSI’s bullish divergence on lower timeframes reinforces the case for upside continuation.

As long as LINK holds above key Fibonacci retracement levels and maintains its impulsive structure, the likelihood of reaching the next major resistance at $18.01 remains high.

Key Levels to Watch

• Immediate Resistance: $16.09 (1.0 Fibonacci extension).
• Key Resistance: $18.01 (0.618 Fibonacci retracement).
• Major Resistance: $20.45 (0.5 Fibonacci retracement).
• Immediate Support: $15.43 (0.5 Fibonacci retracement).
• Critical Support: $14.53 (0.786 Fibonacci retracement).
• Short-Term Target for Wave (v): $17.40 (2.0 Fibonacci extension).
• Invalidation Zone: Below $14.78.