Chainlink's Price Fluctuations and Bearish Outlook
Chainlink (LINK) has experienced significant price fluctuations in recent months. After a prolonged consolidation phase, the price surged to $22.50 on March 11, marking an 81% rise from its January 8 low. However, recent support breaks and a bearish outlook suggest that the current downtrend may continue.
The uptrend began with a breakout above $9 on October 9, 2023, completing the first five-wave sequence in this bullish cycle. A subsequent pullback aligned with wave 2 of a broader bull market, with LINK finding support near $9 on August 5. Following this support, LINK rebounded, reaching $11.36 on August 22 and $13 by September 28.
However, the absence of a clear five-wave pattern suggests cautious optimism. Although it formed an ascending channel, its failure to form a five-wave impulse and a breakout below the ascending support could point to more downside.
The hourly chart shows that from August 5 to September 28, LINK advanced three waves to nearly $13. Since its recent high, another downturn followed, with the price breaking the ascending support and currently being traded at $10.68.
According to a new count from September 28, we saw the first two sub-waves of the next descending move. This makes the last downward advancement from October 30, its third sub-wave, likely to continue.
Alternatively, the price may find support at these levels, in which case we will reevaluate the count. However, as the count currently stands, LINK is expected to reach its near-term target of $8.50.
If this happens, the projection will be validated, and further downtrend continuation will be expected, leading to lower values than in August.