Long

Chainlink : Rocket Launch or Freefall?

Updated

Looking at Chainlink on the daily chart, we've noted the development of a 5-wave structure from a low at $5, culminating in a Wave 1. This wave is projected to range between $20.3 and $25, currently aligning well with the $20.3 mark. Following this, we anticipate a retracement towards Wave 2, which is expected to fall between 50 and 78.6% retracement, landing somewhere between $12.87 and $8.4.

Zooming into the 4-hour chart provides a clearer view, suggesting that Waves 3 and 4, particularly Wave 3, have likely concluded. We're now observing Wave 5, which appears poised for a slight upward trajectory, an action that might seem minor on the broader chart. However, on this more detailed chart, we predict an ascent up to a maximum of $22.46, though, as indicated by our analysis on the daily chart, a push up to approximately $25 is also within the realm of possibility.

Note

For Chainlink (LINK), it appears our scenario that we've completed Wave 1 through to Wave ((v)) at the 61.8% extension at $20.3 is accurate. This aligns precisely with our prediction that Wave 5 would conclude exactly where anticipated. Since then, we've been experiencing a downward movement. We intend to wait for a long-term entry opportunity and will likely avoid making any short-term or short entries before then. We'll observe how far LINK might fall, anticipating that our scenario involving a retracement between 50% and 78.6% tends to be the most reliable. Until then, we'll remain on standby and provide updates as necessary.

Note

The analysis for Chainlink (LINK) suggests that after an anticipated downward movement, which ended at $20.30, the price has been in a downtrend, currently having dropped to as low as $17.70. There's an expectation that the price might continue to decline. In the 4-hour chart, after a five-wave upward structure where wave 1 was formed higher than expected, so far, a wave (a) has been seen ending at $17.70. Currently, the formation of wave (b) is awaited, but it's uncertain where this wave will finalize (whether at $19.60, as a Regular Flat, or an Expanded Flat). Wave (b) is considered particularly challenging to predict, hence no active trading recommendation is being made, rather a stance of observation is adopted.

Should the price exceed $22, i.e., go beyond the 138% level, this could indicate that the downtrend has ended, and a reevaluation of the market situation would be necessary. Until then, a continued downtrend is anticipated, with a target range for the overarching wave 2 between 50% and 78.6%. This analysis underscores the importance of monitoring market movements and waiting for developments before drawing further conclusions or taking actions.

Note

Sometimes it's both lovely and absurd how well and accurately the Elliott Wave methodology works, and we see this again with Chainlink, showcasing its precision. We're currently in Wave 2, having completed Wave ((a)), during which an Expanded Flat was formed. Wave (c) reached the exact level that extended beyond Wave (v) in Wave (b), almost to the cent. Therefore, we are quite confident that Wave ((a)) has concluded. In the coming days, we should form Wave ((b)) and then complete Wave ((c)), or Wave 2, where our limit order is placed at the 50% Fibonacci retracement. We're likely to develop a three-wave structure next. We will be able to draw this in more detail as it develops further. For now, there's not much to discern since this sell-off occurred yesterday.

Note

For Chainlink, there hasn't been any significant development to shift us away from the scenario that we're in another correction phase, suggesting that Wave 2 is not yet complete. Although we've momentarily exceeded our previous levels, we haven't significantly broken out above the 138% level. There was a brief spike above it, but it didn't sustain, which is a common occurrence in the crypto market and such spikes can't always be taken into account in these fast-moving markets.

We are now expecting a five-wave downward structure until we complete our limit at the 50% level. Should we exceed the Wave ((b)) level, specifically at $22.87, this scenario would be invalidated, and we would need to reassess our stance. Until such a development occurs, we remain bearish on Chainlink.

Note

For Chainlink, we assume that we have already completed the subordinate Wave (iii) at the 161.8% level at $16.65. We believe we are now forming Wave (iv), before moving into a deep Wave (v) for the overarching Wave 2. Now, for Wave (iv), we expect to hit around the 38,2 to 50% level. However, we should not exceed this by too much, as this is our invalidation zone, corresponding to the zone of Wave (i), where we do not want to linger for an extended period. Wicks are allowed, but prolonged stays are not. Afterward, as mentioned, we expect to descend to complete our overarching Wave 2 at $12.93.

Note

Following the sell-off over the past two days, a nice opportunity has emerged with Chainlink. We continue to believe that Wave 2 has not yet concluded and anticipate a descent to just about $13. We maintain this stance, suspecting that Wave ((a)) has finished and now expecting Wave ((b)), which we believe will manifest as a Flat correction, anticipated again at 138 percent. Hence, we foresee bullish momentum for Chainlink and do not expect it to fall below this support zone. Instead, we predict a surge up to $22.43, followed by a more substantial sell-off down to the $13 mark, aligning with our entry at the 50 percent retracement of the Wave 1. We're not placing an entry just yet as we'd like to take a closer look. There are still a few days before this unfolds, but it's likely, unless we invalidate it by having already completed Wave 2 where Wave ((a)) currently stands. However, we don't believe that to be the case, thus anticipating a further decline.
You will find the possible new setup in a new post soon. So please consider following to get the notification once an update or analysis is posted. 😁

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