ChainLink - $LINK Hopium is over, time for a dump!Most crypto traders have probably heard of the cryptocurrency ChainLink at this point, it was one of the few digital assets to see a bullish reversal so far. The ticker for this coin is $LINK.
Since December 2018 $LINK has seen a sharp rise from ~$0.19 all the way to ~$4.60 at its peak in July. Interestingly enough, we have only started hearing about this coin more recently. This hype that has recently picked up also coincides with its price somewhat recently peaking.
Fundamentally this information makes me feel that a sharp correction wouldn’t be at all surprising. The charts seem to tell us the same thing.
Looking at this chart we can see that an Elliot wave pattern was completed and an ABC pattern is currently forming. The B wave seems to have completed as we are failing to breach the resistance that I have marked on the chart.
This picture shows a breakdown of the corrective waves that have occurred so far. We can see a possible 5 wave pattern completing the A wave and a 3 wave ABC structure completing the B wave.
The A wave completed at the .5 Fibonacci retracement level. To complete the C wave I expect the price to reach at least the .618 Fibonacci zone, also known as the golden zone. I will be further analyzing this trade once we get closer to that zone.
If we reach this zone that would be approximately a 19% decrease in the price.
What would I do if I was holding $LINK right now? I’d sell, and if I was a believer in the long term potential of the project I’d be sitting on my hands and waiting for a better entry point. Preferably around the golden zone.
This is not financial advice, this is just how I’d approach the trade.
