- LINK tests resistance near $22.21, with a potential target at $26.63 if a five-wave pattern forms.
- Current three-wave move lacks confirmation of a Wave 2 bottom, signaling caution.
- Support levels at $20.185 and $19.065 could act as buffers if the price declines.
Chainlink Tests Key Resistance Zone
Chainlink (LINK) is at a pivotal moment, with its price testing a key resistance level, as highlighted by a recent analysis from More Crypto Online on X. The chart, spanning a one-hour timeframe on Coinbase, shows LINK’s price action unfolding in a three-wave pattern, suggesting that the current upward move lacks confirmation of a completed Wave 2 bottom. Analysts are closely watching for a potential five-wave impulse to signal a stronger bullish trend.
Descending Trendline Defines Resistance Levels
The chart features a descending yellow trendline, acting as a resistance zone around $22.21 to $27.00, where the price has faced rejection multiple times. Below this, support levels are marked, with significant zones at $20.185 (100% Fibonacci retracement) and deeper supports at $19.065 (123.6%) and $18.413 (138.0%).
The price is currently hovering near the $21.32 level, with a 23.60% Fibonacci extension, indicating a critical juncture. If the price breaks above the trendline with a five-wave structure, it could target higher resistance at $26.63, a 38.20% extension. However, failure to form this pattern might see LINK retreat to the $20 support zone.
Elliott Wave Theory Guides Market Outlook
This analysis underscores the importance of wave structure in Elliott Wave theory, a popular tool among traders to predict market movements. The lack of a confirmed bottom keeps the outlook cautious, with traders advised to monitor volume and wave development closely. Chainlink’s role as a leading oracle network adds intrigue, as its price often correlates with broader DeFi trends.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
