Chainlink (LINK) Breaks $10 Mark — Key Reasons It Might Hit $22
Here's How LINK Can Reach $22 | Credit: Hameem Sarwar
Key Takeaways
- Chainlink (LINK) has fallen over 50% since its yearly high in March.
- It is possible Chainlink’s long-term correction ended on Aug. 5.
- How much will LINK increase if it has started a new bullish trend?
Chainlink (LINK) was one of the first movers of the current market cycle alongside Solana (SOL). However, LINK lost momentum by Dec. 2023 and has increased more gradually.
On a more positive note, Chainlink’s price movement since Aug. 2024 suggests it is finally ready to resume its upward movement. How can LINK confirm this move, and where will it head if the breakout is validated?
LINK Price Completes Correction
The weekly time frame wave count shows that LINK has completed a five-wave increase starting in June 2023, culminating with a high of $22.87 in March 2024. The LINK price has been correcting since, falling by 51%. The lowest point during the decline was $8.08, reached on Aug. 5.
The price action since has been extremely bullish. LINK validated the $8.70 horizontal support area and 0.786 Fibonacci retracement support level and reclaimed the channel’s support trend line by bouncing. Then, in September, it created its first higher low since the correction started.
The strength of the bounce and the fact that the decline is contained inside a descending parallel channel suggests that it is part of an A-B-C corrective structure.
Today, the Chainlink price attempts to break out from the channel’s midline. If it does, it will confirm the LINK correction is over and likely trigger an upward movement toward a new yearly high.
Despite this bullish price action and wave count, the weekly Relative Strength Index (RSI) and MACD are not yet bullish. While both are increasing, the RSI is below 50 and the MACD is below 0. They have to reclaim these levels for the trend to be considered bullish.
What Analysts Are Saying
Analysts on X are bullish on Chainlink’s potential for the rest of 2024. Jesse Olson noted a double bottom pattern and suggested that his indicators have given a buy signal. If the LINK price breaks its trend line, he predicts an increase toward the $14-$18 range.
Other analysts, such as Investing Haven and Mekatataku, have noted even more bullish long-term patterns and believe the price will increase to new all-time highs this cycle.
These analyses align with the bullish Chainlink prediction given by the weekly time frame.
Short-Term LINK Breakout
The shorter-term six-hour chart also gives a bullish outlook. The Chainlink price has broken out from a descending parallel channel containing the drop since the local high of Aug. 26. Then, it reclaimed the minor resistance at $10.20, a move combined with an RSI increase above 50 and a MACD increase above 0.
The only resistance left in short-term time frames is at the local top, near $12. If LINK breaks it, it will also move above the channel’s midline. This would confirm the bullish long-term scenario of a completed correction.
In that case, LINK could increase to $18 and potentially reach a yearly high of $22.87.
LINK Price Could Reach $22
Chainlink’s long and short-term timeframes align, giving a bullish prediction for the rest of 2024. If LINK breaks out from its long-term channel, it will confirm its upward movement and gradually increase toward $22.
