Chainlink Price Falls After Rejection | Credit: Getty Images
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Key Takeaways
The Chainlink price decreased after a rejection by a Fib resistance on May 29.
LINK has traded 23% below its yearly high of $22.85 reached on March 11.
Is the LINK price still correcting, or has it begun a new upward movement?
LINK has increased over 50% since bouncing on April 13 but has not cleared its main resistance area yet. Rather, the Chainlink price has fallen since a rejection on May 29.
The price trades between important horizontal and resistance areas. So, the critical question is which will break first. If the price moves above resistance, it can quickly increase to a new yearly high. Conversely, a breakdown will mean a drop to the yearly lows is likely instead.
Chainlink Price Falls After Rejection
The daily time frame Chainlink price analysis shows an ongoing increase since April 13. At the time, LINK had fallen to a low of $11.78. After creating successive higher lows, LINK broke out from a descending resistance trend line on May 16. The upward movement led to a high of $19.22 on May 29.
The Chainlink price has fallen since, catalyzed by a rejection from the 0.618 Fibonacci retracement resistance (red circle). Nevertheless, LINK still trades above the $16.80 horizontal area, which is now likely to provide support. So, the price action shows that the LINK price trades above horizontal but below Fib support.
LINK/USDT Daily Chart | Credit: TradingView
Technical indicator readings are mixed. The MACD is above 0, but just made a bearish cross (red icon) and is trending downward. Similarly, the RSI is above 50 but trending down. So, the price action and technical indicators are both undecided, failing to verify the trend’s direction.
Is The LINK Trend Bullish?
While the daily time frame price analysis is undetermined, the shorter-term six-hour chart is more bullish. The reason for this is that the LINK price has broken out from an ascending parallel channel that contained the increase since April. The breakout is a sign the movement is impulsive rather than corrective.
After breaking out, LINK validated the channel as support and resumed its increase. Moreover, there is a completed five-wave increase, further implying the increase is impulsive.
This bullish hypothesis will be confirmed if LINK closes above the 0.618 Fibonacci retracement resistance at $18.64.
LINK/USDT Six-Hour Chart | Credit: TradingView
In that case, the wave count will imply that the price is in the fifth and final wave of an increase (white) that started with the recovery after April 12. A likely target for this increase is at $23, created by the 2.61 extension of wave one (white). This will be a new yearly high.
Despite this bullish LINK price prediction, closing below the channel’s resistance trend line will put the impulsive increase in doubt. Then, LINK could fall to the channel’s support trend line at $14.
Bullish Sentiment Valid Above $17
Despite Chainlink’s substantial recovery since April, the future trend’s direction is still unclear. The trend leans bullish as long as the price trades above the confluence of supports at $17. The breakout from a parallel channel and wave count also lean bullish, predicting a new yearly high in June.
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.
