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.
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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.
