The Chainlink (LINK) price has fallen significantly since its yearly high on Nov. 11.
The price decrease has been contained inside a symmetrical triangle. Will LINK break out from it?
Chainlink Creates Consecutive Bearish Candlesticks
The weekly time frame technical analysis shows that the LINK price has increased since June, when it fell to a low of $4.78 (green icon). The price created a higher low in September (black icon), accelerating its rate of increase.
The LINK price upward movement culminated with a new yearly high of $16.60 on Nov. 11, an increase of nearly 200% in 56 days.
However, the LINK price has fallen since, creating successive bearish weekly candlesticks.
With the Relative Strength Index (RSI) as a momentum indicator, traders can determine whether a market is overbought or oversold and decide whether to accumulate or sell an asset.
Bulls have an advantage if the RSI reading is above 50 and the trend is upward, but if the reading is below 50, the opposite is true.
The RSI gives a mixed reading since the indicator is above 50 but falling.
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What Are Analysts Saying?
Cryptocurrency traders and analysts on X give conflicting views on the future trend.
The CryptoBull believes that the price will increase because of the release of LINK staking v0.2. Early access for LINK staking will go live on Dec. 7, while general access will do so on Dec. 11. He stated that:
“Once LINK staking v0.2 goes live, even more supply will be locked up.
With less supply on the open market, if demand stays the same or goes up, price will rise. Goodness gracious, I’m excited for us.”
CryptoPoseidonn is not so sure the future trend is bullish. While he suggests the LINK price will increase in the short-term, he believes LINK will eventually return to $1.
RektCapital also suggests that the trend is bearish since LINK failed to break out from a long-term horizontal resistance area at $15.
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LINK Price Prediction – Is Correction Over?
While the weekly time frame readings are mixed, the daily timeframe provides a more bullish outlook. This is because of the Elliott Wave readings and the RSI.
Technical analysts employ the Elliott Wave theory to identify recurring long-term price patterns and investor psychology, which helps them determine the direction of a trend.
The most likely wave count suggests that LINK is nearing the end of wave four in a five-wave increase (white). Wave four has taken the shape of a triangle. If the count is correct, the LINK price will soon break out from the triangle, starting wave five.
The daily RSI supports this possibility since the indicator has generated significant hidden bullish divergence (green).
A potential target for the top of wave five is $19, nearly 30% above the current LINK price. The target is found by projecting a channel connecting the top of waves one and three.
Despite this bullish LINK price prediction, a breakdown from the triangle will mean the price is still correcting. In that case, a 25% decrease to the channel’s support trend line will be expected.
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Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.
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