- Chainlink (LINK) is exhibiting strong bullish momentum, with its price action aligning with Elliott Wave structures and Fibonacci levels, targeting $30.81 and potentially $35–$40 if current trends persist.
- Maintaining support above $22.74 is critical for further gains, while a break below $17.90 could invalidate the bullish outlook.
Chainlink (LINK) has been making waves in the cryptocurrency market, breaking above key levels and signaling further bullish potential. With its price action aligning closely with Elliott Wave structures and Fibonacci retracement levels, LINK appears poised for significant upside. Here’s a closer look at what’s driving the momentum and key levels to watch.
Wave Patterns Signal Bullish Continuation
Recent analysis of Chainlink’s daily chart reveals a classic five-wave Elliott Wave pattern, indicating a larger impulsive structure in play. After a prolonged correction, the price surged, completing Wave (iii) at $30.81. A corrective Wave (iv) followed, retracing to $17.90, a level supported by the 0.618 Fibonacci retracement. The subsequent rebound above $22.74 suggests Wave (iv) has concluded, paving the way for the upward progression of Wave (v).
On the hourly chart, a lower-degree five-wave structure supports this bullish outlook. The ongoing Wave (iii) has already reached key resistance near $26.88, with targets set to challenge $30.81 and potentially extend to the $35–$40 range in the final stages of Wave (v).
Key Levels to Monitor
Support Zones:
- Immediate Support: $25.00, aligning with the 0.236 Fibonacci retracement.
- Key Support: $22.74, marking the end of Wave (iv) retracement.
- Critical Support: $17.90, where a break below would invalidate the bullish wave count.
Resistance Targets:
- Short-Term: $26.88, the high of Wave (i).
- Intermediate: $30.81, Wave (iii)’s previous peak.
- Long-Term: $35.00–$40.00, the anticipated target for Wave (v) if momentum persists.
Momentum Indicators Support Further Gains
The Relative Strength Index (RSI) on both daily and hourly charts remains neutral-to-bullish, suggesting ample room for additional gains. However, traders should remain cautious of minor pullbacks, which are typical within an advancing wave structure. These retracements could test support at $25.00 or $26.50 before the next bullish push.
Final Thoughts: Bullish but Cautious
Chainlink’s price action highlights strong bullish momentum supported by technical patterns and indicators. While the near-term outlook is optimistic, maintaining support above $22.74 is crucial for further advances. A break above $30.81 would reinforce the bullish trend, targeting the $35–$40 zone. However, traders should remain vigilant, as a dip below $17.90 could negate the bullish structure.