The Chainlink Price Hits New High, But Faces Potential Breakdown
The Chainlink (LINK) price recently reached a new yearly high of $17.32 before experiencing a decline. Currently, the price is approaching a critical level of short-term support. The question is whether it will bounce back or if the decrease will lead to a breakdown.
Chainlink Falls After Reaching Yearly High
According to technical analysis on the weekly timeframe, the LINK price has seen rapid growth since breaking out from a long-term horizontal resistance level in October. This upward movement resulted in a new yearly high last week. However, this week has been bearish for LINK, as it is forming a bearish engulfing candlestick, only the third one since the upward trend began.
Analysts Remain Bullish on Chainlink’s Future
Several cryptocurrency traders and analysts are optimistic about LINK’s future trend. Steve believes that the price will reach an all-time high due to its move above a significant long-term horizontal level. Similarly, RektCapital expects LINK to retest the top of its breakout pattern, while InmortalCrypto sees bullish potential in a short-term deviation below the range low and subsequent reclaim.
LINK Price Prediction – When Will the Correction End?
Using the Elliott Wave theory, technical analysts predict that the current correction in LINK’s price is part of a larger upward movement. The most likely wave count suggests that LINK is currently in its fourth wave out of five. The corrective wave’s bottom could be around $12.75, which represents a 12% decrease from the current price. If LINK breaks down from its current channel, it could fall by 20% to $11.40.
However, if LINK breaks out of the channel, it could mark the beginning of the fifth wave and potentially lead to a 90% price increase to $27.
Hot Take: Chainlink Faces Potential Breakdown Amidst Bullish Predictions
While Chainlink recently reached a new yearly high, it is now facing a potential breakdown as it approaches critical support levels. Technical analysts are divided on its future direction, with some predicting a continuation of the upward trend and others anticipating a corrective wave. It remains to be seen whether LINK will bounce back or experience further decline in the coming days.
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