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Chainlink (LINK) Price Gains 8% After Failed Downside Breakout — Eyes Further Upside

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • LINK hovers near $12.50 resistance, struggling to confirm the uptrend.
  • The failed breakout below support shows continued buyer interest.
  • The complex correction could lead to a $14 or further downside.

The Chainlink (LINK) price has shown mixed signals, with significant upward movements but lacking a clear five-wave bullish structure.

This analysis reviews recent price behavior, key support levels, and potential scenarios that may indicate LINK’s next direction.

LINK Price Analysis

The LINK price surged to $22.50 on March 11, an 81% increase from its Jan. 8 low of $12.50.

This came after a prolonged consolidation of around $15 since November, suggesting a possible accumulation phase.

The uptrend began with a breakout above $9 on Oct. 9 of the prior year, completing the first five-wave sequence of this bullish phase.

The subsequent downturn aligns with wave two of a broader bull market, where LINK found support at the 0.786 Fibonacci level near $9 on Aug. 5, coinciding with an oversold daily Relative Strength Index (RSI).

LINK price analysis
LINKUSD inside ascending channel | Credit: Nikola Lazic/Tradingview 

Following this, LINK rebounded, hitting $11.36 on Aug. 22 and $13 on Sept. 28, potentially indicating the early stages of a bull phase.

However, a clear five-wave pattern is still absent, suggesting caution remains warranted.

LINK Price Prediction

The hourly chart shows that LINK has started a lower-degree five-wave uptrend. The initial rally from Aug. 5 to 8 was followed by a symmetrical triangle, forming the first two sub-waves.

The following breakout above the triangle’s resistance suggested a third sub-wave, but the subsequent decline below $10 invalidated this bullish scenario.

LINK reached a new high of $13 before a 20% pullback to ascending support, forming another higher low on Oct. 10.

Since then, it has attempted to proceed with the uptrend but has struggled to surpass $12.50, reverting to ascending support.

On Oct. 28, it fell below, but this was a fakeout, with the price quickly snapping back above the ascending trendline. 

From its recent low, LINK recovered by 8%, and although this isn’t enough to call for a rally, the failed downside breakout could imply that there is still buyer interest. 

LINK price prediction
LINKUSD 8% recovery seen | Credit: Nikola Lazic/Tradingview 

The whole structure since Aug. 5 could be a complex correction with three consecutive ABC corrections.

That leaves the possibility of another rise to the ascending resistance at $14 for its last C wave to complete.

Alternatively, LINK could find resistance again at $12, making a decisive breakout to the downside on its third attempt. 

Disclaimer: The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.
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