Chainlink (LINK) Price Analysis & Prediction: Is a Massive Breakout on the Horizon?
Chainlink (LINK) has been in consolidation mode after a sharp correction from its previous highs. But is this just a pause before the next explosive move? The charts are revealing some compelling signals, and if you’re a trader or investor, this is the moment to pay attention!
LINK’s Current Market Setup
The 4-hour chart shows that LINK has completed a five-wave Elliott Wave impulse, peaking at $30.80 on December 16 before entering a prolonged corrective phase. This correction played out in a WXY pattern, bottoming on February 3 just below the 0.618 Fibonacci retracement level at $16.
Now, here’s where things get interesting: A descending triangle has formed—a pattern that often signals an imminent bullish breakout. Buyers have consistently defended the lower boundary, preventing a deeper collapse.
On top of that, the 4-hour RSI is flashing a strong bullish divergence—a classic sign that selling pressure is weakening. Translation? A big move might be right around the corner.
Key Resistance and Breakout Levels to Watch
If LINK successfully breaks out of the descending triangle, expect fireworks. Here are the critical levels traders should keep an eye on:
- First resistance: $20.45 (0.5 Fibonacci retracement)
- Stronger resistance: $22.89 (0.382 Fibonacci retracement)
- Potential breakout target: Above $29.55 if momentum sustains
If LINK clears these levels, it could officially confirm the end of the correction and ignite a fresh impulsive rally.
What If LINK Fails to Hold Support?
Of course, there’s always the bear case. If LINK fails to hold $18, a deeper pullback could be on the table, with a possible retest of the 0.786 Fibonacci support at $14.53. This level would be a critical zone for buyers to step in before any potential recovery.
Short-Term LINK Price Prediction: Wave (iii) Incoming?
Zooming into the 1-hour chart, we see a completed corrective wave (ii) at $17.47. If LINK is ready for an impulsive wave (iii), here’s where it could be headed next:
- First target: $23.51 (1.0 Fibonacci extension)
- Next major level: $25.15 (1.272 Fibonacci extension)
- Higher targets: $27.24 (1.618 Fibonacci extension)
- Potential final wave (v) target: $29.55+
That said, the RSI remains neutral, meaning traders should wait for confirmation before jumping in. A decisive breakout above the descending wedge pattern would be the most bullish signal yet.
Final Thoughts: What’s Next for LINK?
Chainlink is at a crossroads. A confirmed breakout above $20.45 could spark a rally toward $29.55 and beyond. But if the $18 support crumbles, we could see a retest of $14.53 before any meaningful recovery.
Key Levels to Watch:
- Immediate Resistance: $20.45 (0.5 Fibonacci retracement)
- Key Support: $18.00 (0.618 Fibonacci retracement)
- Critical Support: $14.53 (0.786 Fibonacci retracement)
- Short-Term Target: Above $29.55 if bullish momentum holds
- Bearish Invalidation Zone: Below $14.00
The market is at a make-or-break moment. Are you ready for the next big move
