Chainlink (LINK) Price Remains Above $10 While Downward Pressure Persists
LINK's price made a breakout below ascending support signaling the start of a bearish phase.
Key Takeaways
- LINK’s uptrend halted at the $12.50 resistance.
- The current count suggests a further downside to $8.50.
- A potential support test could alter the bearish outlook.
Chainlink (LINK) has experienced significant price fluctuations, rising to $22.50 on March 11 after a prolonged consolidation phase.
With recent support breaks and a bearish outlook emerging, LINK’s next moves will determine whether the current downtrend continues or reverses. Here are the key takeaways.
LINK Price Analysis
LINK’s price surged to $22.50 on March 11, marking an 81% rise from its January 8 low of $12.50.
This increase followed a prolonged consolidation of around $15 since November last year, hinting at a potential accumulation phase.
The uptrend began with a breakout above $9 on Oct. 9, 2023, completing the first five-wave sequence in this bullish cycle.
A subsequent pullback aligned with wave 2 of a broader bull market, with LINK finding support near $9 on Aug. 5, coinciding with an oversold daily RSI and the 0.786 Fibonacci level.
Following this support, LINK rebounded, reaching $11.36 on August 22 and $13 by September 28, possibly signaling early bull-phase momentum.
However, the absence of a clear five-wave pattern suggests cautious optimism.
Although it formed an ascending channel, its failure to form a five-wave impulse and a breakout below the ascending support could point to more downside.
LINK Price Prediction
The hourly chart shows that from Aug. 5 to Sept. 28, LINK advanced three waves to nearly $13. If we had seen one higher high, there would have been a chance that this would be the first sub-wave of the bull phase, as a five-wave pattern would have developed.
Instead, after returning to ascending support at $10.50 on Oct. 10, a lower high of $12.50 was made on Oct. 30.
Since its recent high, another downturn followed, with the price breaking the ascending support and currently being traded at $10.68.
Although this is still a higher low compared to Oct. 10, the outlook is primarily bearish.
According to a new count from Sept. 28, we saw the first two sub-waves of the next descending move. This makes the last downward advancement from Oct. 30, its third sub-wave, likely to continue.
Alternatively, the price may find support at these levels, in which case we will reevaluate the count.
However, as the count currently stands, LINK is expected to reach its near-term target of $8.50.
If this happens, our projection will be validated, and further downtrend continuation will be expected, leading to lower values than in August.
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