Chainlink Price Defies Trend as Market Slumps After Ethereum ETF Approval: LINK Spikes 6%, Can It Continue?
Chain link price analysis
Key Takeaways
- Chainlink’s value rose above its Tuesday high on Friday, May 24.
- Current patterns suggest the start of a significant bull phase for LINK.
- A break above $17 could signal further upward movement.
While the cryptocurrency market fell since Tuesday, with its market cap dropping almost 7%, Chainlink’s price continued its upward trajectory. It, too, went on a decline after May 21 unlike the market, which is still going down, LINK spiked by nearly 15% since May 23, crossing its Tuesday high.
LINK Price Analysis
Chainlink‘s value increased to $22.50 on March 11, an 81% rise from its January 8 low of $12.50. Before this, the cryptocurrency stabilized at around $15 from November and was in an accumulation phase.
Chainlink‘s upward trend began with a breakthrough above $9 on October 9 2023. The current pattern indicates it might have completed the first five-wave sequence in this bullish phase.
This suggests that the following downturn should be considered the first correction of the bull market. The wave structure, Fibonacci levels, and daily chart RSI all support this. The price of Chainlink rebounded from the 0.618 Fibonacci level, a common reversal point in a five-wave progression.
The daily chart’s Relative Strength Index (RSI) reached its lower limit, indicating oversold conditions similar to those in June, when Chainlink began its main upward trend.
LINK Price Prediction
With the price increasing from the April 13 low of $12, there are strong signs that it has begun its larger third wave, potentially pushing the price to a new annual high above $30.
A definitive confirmation would require a rise above its current level of $17. This would require passing the horizontal resistance zone from mid-November 2023 to January 31, 2024. If Chainlink can breach this barrier, it would signal the onset of the next upward trend.
Judging from the wave structure, the descending triangle was consolidative. It also encompassed the first two waves out of the lower-degree five-wave impulse. May 24’s spike exceeded May 21’s, validating the uptrend.
There is still more room to go in the short term, while LINK would be expected to move slightly sideways for wave four. After it does, another higher high to its yearly one would be expected for wave five to $22 area.
However, this whole move from April 13 would be counted as the first advancement within the larger uptrend. Therefore, after another correction for a higher low, LINK could continue its bull cycle and make new yearly highs later in 2024.
Disclaimers
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
Chainlink Price Rallies – Signaling End to LINK Correction – Is $20 Next?
