Chainlink’s Whirlwind 12% Price Surge Sparks Hope for a New Bull Run — What’s Next For LINK?
LINK spiked 12% in the last 24 hours suggesting further upside continuation. Will it persist past descending resistance?
Key Takeaways
- LINK is approaching a critical descending resistance level.
- A breakout above resistance could signal a bullish reversal.
- Rejection may indicate the downtrend isn’t over yet.
Chainlink (LINK)’s price has decisively breached its previous high watermark since Aug. 21, fueled by a powerful momentum surge.
This breakout could be a harbinger of a sustained uptrend, potentially culminating in a decisive push above its imposing descending resistance level.
In this analysis, we’ll examine the prospects of LINK embarking on a fresh, bullish cycle and identify key levels and scenarios to monitor for confirmation of this optimistic outlook.
LINK Price Analysis
Chainlink‘s price surged to $22.50 on March 11, marking an 81% increase from its Jan. 8 low of $12.50. Before this rise, the token had stabilized around $15 since November 2023, indicating an accumulation phase.
Chainlink’s upward trend began with a breakout above $9 on Oct. 9, 2023. The current pattern suggests that the first five-wave sequence of this bullish phase was complete.
This implies that the next downturn should be considered the initial correction in the ongoing bull market, as it is wave 2. On Aug. 5, LINK found support at the 0.786 Fibonacci level at around $9, and the daily chart’s RSI fell to an oversold area.
The price bounced back and increased to $11.36 at its highest point on Aug. 22. Its last 12% gain in the last 24 hours made a higher high, indicating the potential start of an uptrend.
LINK came from a higher low of $10 but is still below its significant descending resistance anchored at its May 29 high of $19. A breakout above will provide a more decisive confirmation of this significant reversal starting and a rejection of the potential downtrend continuation.
LINK Price Prediction
Zooming into the hourly chart and examining the wave structure, we see that LINK could have started a lower-degree five-wave uptrend. Its initial rise from Aug. 5 to 8 was followed by a symmetrical triangle, which could be the first two sub-waves.
Its recent uptrend led to a breakout above the symmetrical triangle’s resistance and could be its third sub-wave. If this is true, LINK is ahead of a breakout above its descending resistance and on to a target of 1.618 Fibonacci extension at $14.30.
Should this develop and the price retest its broken resistance for support, one more high would be expected. This would be its final wave in the uptrend from Aug. 5 and could lead to the $15.40 area.
Alternatively, if LINK faces rejection at the descending resistance, it could mean the recovery from the Aug. 5 low was corrective, and the price will face further downside movement. In this scenario, the long-lasting downtrend has yet to finish, and a lower low to $7 would mark its completion.
