Here's Why the Chainlink Price May Have Bottomed | Credit: Hameem Sarwar
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Key Takeaways
Chainlink (LINK) has crashed by 27% since its August highs.
Chainlink’s price could complete a corrective wave two soon.
Will LINK begin an upward movement that takes it to new highs?
Chainlink’s price has fallen since Aug. 22, culminating with a low of $20.24 today, marking a 25% drawdown since the August high.
Despite its massive decline, several signs point to the Chainlink correction’s end.
The long-term indicator readings, short-term wave count, and price action all suggest the bottom is close.
With that in mind, let’s examine the charts.
Chainlink Price Analysis
The LINK price broke out from a descending resistance trend line in June and reached a high of $27.87 in August.
While LINK nearly reached its cycle high, it failed to break it by roughly 10%.
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So, even though the LINK price has fallen today, its long-term trend remains intact, suggesting that new highs are likely before the end of the year.
What’s Next for LINK?
The daily time frame suggests that LINK will reach a bottom soon, if it has not already done so.
According to the wave count, Chainlink’s price completed wave four of a five-wave upward movement (green) today, bouncing at the support trend line of a descending parallel channel (green icon).
The bounce is very close to the 0.5 Fibonacci retracement support level (green), providing even more confluence to the possibility that this is the actual bottom.
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.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
