Chainlink (LINK) Breaks Minor Resistance but Faces Key Pivot Zone Before Breakout

Key Takeaways

• LINK completed a complex WXYXZ correction.
• Price found support at a key Fib confluence zone.
• A breakout above $15.30 could confirm wave 3.

Chainlink (LINK) is trading around $13.88 after pulling back from a local top near $15.30.

The price action shows a completed corrective move and early signs of a bullish continuation.

Both higher and lower timeframes suggest the asset is setting up for another upward impulse.

LINK Price Analysis

The 4-hour chart reveals that LINK completed a complex WXYXZ corrective structure, retracing from its $30.80 high down to the $10.10 region.

This long-term correction appears to have formed within a descending wedge pattern, which was eventually broken to the upside in early April, confirming a shift in structure.

Price then initiated a clear five-wave advance that peaked at $15.30 — most likely wave (1) of a new bullish cycle.

Following the impulse, LINK returned to a major confluence zone between $13.25 and $14.50.

This area aligns with horizontal support, the 0.786 Fib retracement from the March low, and the upper boundary of the former wedge structure.

The Relative Strength Index (RSI) on the 4H chart also dipped into the oversold region before bouncing — a strong signal that the correction may be complete.

Structurally, this retracement respects the integrity of a wave (2) correction and appears to be bottoming near the previous fourth wave of lesser degree — a common occurrence in Elliott Wave theory.

The overall picture points to a higher low and to the establishment of the foundation for a wave (3) rally.

A confirmation would require a strong move above $15.30 with increasing volume and a break in market structure to form a higher high.

Should support at $13.25 break decisively, the bullish setup would be invalidated, opening the door to a $12.00 or lower retest.

However, current confluence levels suggest that bulls are regaining control.

LINK Price Prediction

Zooming in on the 1-hour chart, LINK formed a clean impulsive five-wave move off the $10.10 bottom, followed by an orderly (a)-(b)-(c) correction into the current $13.80 zone.

The (c) wave terminated with a bullish falling wedge formation, and the recent breakout confirms the end of the corrective phase and hints at a new upward impulse in progress.

Wave (a) of the correction found support around $14.00, while wave (c) dropped toward $13.25, creating a bullish divergence on the RSI.

This divergence was accompanied by decreasing volume during the correction — another bullish signal.

Since then, the price has bounced strongly, breaking out of the falling wedge and reclaiming the lower boundary of the prior accumulation zone.

The next key objective is a breakout above the local high at $15.30.

This would confirm the formation of a higher high and initiate wave (3), often showing the strongest momentum in a five-wave sequence.

If confirmed, bullish targets include the 0.618 Fibonacci retracement at $18.01 and the 0.5 retracement from the macro top at $20.45.

If the breakout fails and price loses $13.25 again, it would invalidate the short-term bullish thesis and indicate a possible extension of the correction toward $12.00–$11.00 before any sustainable rally resumes.

Key Levels to Watch

• Immediate Support: $13.25 (0.786 Fib + structural demand).
• Local Resistance: $15.30 (wave (1) high).
• Breakout Target: $18.01 (0.618 Fib retracement).
• Macro Resistance: $20.45 (0.5 Fib retracement).
• Invalidation Level: Below $13.00.