Chainlink (LINK) Correction Ends as Price Surges 30% on Pi Network Integration

Key Takeaways

• Chainlink (LINK) is breaking out from a descending wedge.
• The price follows a long-term ascending support trend line.
• Will LINK break out from the wedge and move toward $20?
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Chainlink announced positive news last week, preventing a breakdown from a critical long-term support level.

Data streams announced the support for 22 new assets and seven new integrations of the Chainlink standard.

One of the Chainlink integrations was Pi Network, a highly anticipated announcement that helped the price of both assets soar.

With that in mind, let’s analyze the LINK price action and see if it can sustain its momentum for the rest of the month.

Chainlink Prevents Breakdown

The weekly time frame analysis shows that LINK has increased alongside an ascending support trend line since May 2023.

Last week, LINK created a bullish candlestick (green icon) to prevent a breakdown from the support level.

Such failed breakdowns are bullish signs, often leading to bullish trend reversals.

However, technical indicators are still bearish. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) trend downward.

So, the weekly time frame does not confirm whether the trend is bullish or bearish.

LINK Price Breakout

As predicted at the beginning of April, LINK completed wave five at the wedge’s support trend line and the $10.50 horizontal support area.

Chainlink’s price has increased since, breaking out from its descending wedge this week.

A bullish divergence in the RSI and MACD (orange) preceded the upward movement, increasing its legitimacy.

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Furthermore, the wave count shows a completed five-wave downward movement (red) inside the wedge.

Therefore, Chainlink’s short-term correction might be over, leading to a significant upward movement in the next few months.

If the count is accurate, the Chainlink price will increase toward at least the 0.382 Fibonacci retracement resistance level at $17.92.

Bullish Trend Ahead

Chainlink announced several new integrations last week, the most important being Pi Network.

The LINK price prevented a breakdown from a long-term support level and is breaking out from a shorter-term wedge.

If LINK confirms the breakout, it could increase to the next resistance at $17.90.