Chainlink (LINK) has witnessed a remarkable surge in investor interest and liquidation following the approval of Ethereum Exchange-Traded Funds (ETFs) on May 23. This surge is attributed to the increased attention from large investors in projects built on the Ethereum blockchain.
On May 29, LINK’s price soared to a new monthly high of $19.19, marking an approximately 35% gain for May 2024. This sharp increase aligns with the timing of the Ethereum ETF approval, highlighting Chainlink’s appeal as a top Ethereum-hosted altcoin. As of press time, LINK is trading at $18.26, a decrease of 2.24% in the last 24 hours.
The recent rally in LINK’s price suggests a strong correlation between the ETF approval and heightened investor activity. This development underscores Chainlink’s growing importance and attractiveness within the cryptocurrency market.
Current technical analysis using Elliott Wave Theory indicates that LINK is in a counter-trend, corrective mode, specifically within a zigzag structure. The analysis positions LINK in Wave C, suggesting a potential completion of this wave, which could lead to a price increase in Wave A or Wave I.
BlackRock Overtakes Grayscale: Bitcoin ETF Reaches $20 Billion AUMThe direction of the next higher degree is Wave (I) of an impulse, with an invalidation level set at 8.498. This level is crucial as it marks the point below which the current wave structure would be invalidated. Given the current price action, there is a strong indication that Wave C is complete. This sets the stage for further price gains, reinforcing the bullish outlook for LINK.
The corrective wave (II) appears to have concluded, signaling the beginning of an upward movement in Wave (III). Traders are advised to focus on the five-wave increase in the impulse pattern, which is likely to maintain the price above the $24.00 level. This strategy highlights the potential for significant gains as LINK continues its upward trajectory.
The price of LINK above the MA200 (200-day moving average) strongly indicates an ongoing uptrend. Additionally, the wave oscillator displays bullish momentum, further supporting the positive outlook for LINK.
The recent developments surrounding Chainlink and favorable technical indicators suggest a robust bullish trend. This positions Chainlink as an attractive investment opportunity, capitalizing on the growing interest in Ethereum-hosted projects. With its pivotal role in the blockchain ecosystem and strong technical signals, LINK is poised for continued success in the market.
