- Chainlink may be ending a correction or facing one final dip before a turnaround.
- LINK’s price is nearing the key support level around $6.4, crucial for a bullish shift.
- The altcoin market shows bearish trends with ETH, BNB, SOL, XRP, and DOGE declining.
The altcoin market is undergoing significant shifts, with Chainlink (LINK/USD) prominently featured in the latest Elliott Wave analysis. At press time, Chainlink is trading at $9.89, having dropped by 0.34%. Charting Guy, a technical analyst, highlights two potential scenarios. The market may be approaching the end of its corrective phase, possibly forming a truncated wave 5 of the C wave. Alternatively, there might be one final dip before a potential mid-month turnaround.
Further analysis of the 2-day chart shows that the recent Elliott Wave pattern indicates Chainlink’s price action is following a classic impulse and corrective wave structure. The impulse waves—Waves 1, 3, and 5—reflect the bullish trends, while corrective waves (2, 4, A, B, C) indicate periods of market correction. The focus is on Wave C, which appears to be nearing its end. This phase often signals a potential turning point or the formation of a new bullish trend.
Historically, resistance around $24 has been a significant barrier, with previous peaks of Wave 5 occurring around the $20 mark. Another critical resistance was observed at $16, where Wave B formed. These levels are pivotal in determining the strength of the ongoing correction.
On the support side, levels around $6.4 are notable, as this represents the bottom of Wave C and a projected Wave 2. This zone has been a crucial support level in earlier corrections. Another important support level is $5.7, reflecting strong historical support.
Chainlink’s Potential Bullish Breakout: Key Indicators to Watch
In the broader context, the trend in the altcoin market reflects a general decline. Ethereum (ETH) has seen a drop of -2.94%, while Binance Coin (BNB) has fallen by -2.01%. Solana (SOL) has decreased by -1.47%, and XRP is down by -1.81%. Dogecoin (DOGE) has experienced a more significant drop of -3.23%. These movements underscore a bearish sentiment in the altcoin sector, influencing Chainlink’s price action and its potential for recovery.
