Chainlink (LINK) Technical Outlook – Elliott Wave Perspective
After applying Elliott Wave Theory, the chart appears to speak for itself — the downward corrective phase seems to have concluded.
Zooming into lower timeframes, there are several bullish signs suggesting that LINK is primed for an upward move.
Key Technical Reasons Supporting Upside Potential:
Bullish Flag Formation: A clear flag pattern has formed in lower time frames, and LINK is currently testing its resistance level.
Elliott Wave Count: Based on wave structure, Wave 3 appears to be nearing completion. Should we see a short-term pullback, it would likely be Wave 4, offering a strong buy opportunity around the support zone of the flag.
Fib Confluence: The potential retracement aligns perfectly with the 50% Fibonacci level — a typical target area for Wave 4 corrections.
Two Possible Scenarios:
Immediate Breakout: With support from Bitcoin’s continued momentum, LINK could extend its current Wave 3 and break out from the flag without any significant pullback.
Healthy Correction: Alternatively, LINK could retrace to the 50% Fib level before initiating the final leg of Wave 5 — providing a textbook buying opportunity.
Target:
In both scenarios, the upside target remains the same: $18.00 to $18.40 range.
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