Chainlink (LINK) is currently trading around $13.88 after a sharp pullback from a local top near $15.30. Despite the recent retracement, LINK shows early signs of a bullish continuation as technical indicators point to a higher low and the potential formation of a new impulse wave.
LINK Price Analysis: Structure Points to New Upward Impulse
On the 4-hour chart, LINK completed a complex corrective structure labeled WXYXZ, marking the end of a long-term downtrend that extended from the $30.80 high to the $10.10 region. This correction unfolded within a descending wedge pattern, which LINK broke to the upside in early April, signaling a shift in structure.
Following the breakout, LINK surged in a clear five-wave pattern, peaking at $15.30. The subsequent retracement brought LINK back to a key confluence zone between $13.25 and $14.50. This area aligns with the 0.786 Fibonacci retracement from the March low, a critical support level that coincides with the upper boundary of the former wedge structure.
The Relative Strength Index (RSI) dipped into oversold territory before bouncing back, suggesting the correction may be complete. If LINK holds above $13.25 and reclaims $15.30 with strong volume, a new wave (3) impulse could be underway, targeting $18.01 and potentially $20.45.
LINK Price Prediction: Bulls Eye Breakout Above $15.30
Zooming into the 1-hour chart, LINK formed a clean impulsive wave from the $10.10 bottom, followed by a textbook (a)-(b)-(c) correction that terminated around $13.80. The (c) wave formed a falling wedge pattern, and the recent breakout suggests a bullish reversal.
If LINK can break above the local high at $15.30, the next bullish targets include the 0.618 Fibonacci retracement at $18.01 and the 0.5 retracement level at $20.45. However, a decisive breakdown below $13.25 would invalidate the bullish setup, potentially opening the door for a retest of the $12.00 support zone before a sustainable rally resumes.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Chainlink (LINK) Battles $15 Resistance as Whale Activity Slows and Liquidations Spike
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