See More

Chainlink (LINK) Price Faces Rejection From Range High – All Eyes on $13 Area

3 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • Chainlink's (LINK) price has fallen considerably over the past four days. It culminated with a low yesterday.
  • While the price action in multiple time frames is undetermined, the wave count suggests LINK will fall.
  • Despite the bearish LINK price prediction, reclaiming the range high of $17 can lead to a price increase.
  • promo

The Chainlink (LINK) price has traded inside a horizontal range since November 2023. It was rejected by the range high four days ago.

The price bounced considerably yesterday but still trades in the lower portion of the horizontal range.

The daily time frame technical analysis shows that the LINK price significantly increased in September 2023. However, since November, LINK has traded inside a horizontal range. So far, the range has existed for 77 days.

LINK trades in the lower portion of the range after a rejection on January 20, 2024 (red icon) created four successive bearish daily candlesticks.

LINK Price Prediction
LINK/USDT Daily Chart. Source: TradingView

The daily Relative Strength Index (RSI) gives a bearish reading. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.

If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.

The RSI fell below 50 (red icon) yesterday. Except for a deviation (green circle) in January, the RSI has been above 50 since the upward trend started on September 16, 2023 (green icon).

What do Analysts Say?

Cryptocurrency traders and analysts on X give a mixed view of the future LINK trend. Satoshi Flipper believes LINK will bounce from its range low and increase to $19 soon. 

Chainlink (LINK) Price
LINK/USDT Daily Chart. Source: X

Crypto Tony gives a similar idea. However, Crypto Moose believes LINK will first decrease to $10 or $11. He tweeted:

Don’t be surprised if $LINK drops to $10-$11. Be ready for it I’ll happily accumulate at lower prices Keep your job, have conviction, and stay the course

LINK Price Prediction: Has the Rally Ended?

The technical analysis from the 3-day time frame suggests that the LINK price will break down from the range. This is because of the wave count.

Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend. The most likely wave count suggests that LINK is in wave four of a five-wave upward movement (white). The sub-wave count is given in black.

If the count is correct, LINK will fall 20% to the 0.5 Fib retracement support level at $11.45. This will also validate the resistance trend line of a long-term ascending parallel channel.

LINK Price Prediction
LINK/USD Daily Chart. Source: TradingView

Despite this bearish LINK price prediction, a close above-the-range high of $17 will mean the local bottom is in place. Then, LINK can increase 34% to the next resistance at $19.30.

For BeInCrypto’s latest crypto market analysis, click here

Top crypto projects in the US | May 2024



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. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Valdrin Tahiri
Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona School of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst. (I do not have a discord and will not contact you first there. Beware of scammers)