Chainlink (LINK) has shown signs of price weakness, failing to break out from a long-term horizontal resistance area, with its price declining since reaching a yearly high of $17.30 on December 9. This downturn marks LINK's first significant weakness since breaking out from a descending resistance trend line in place for nearly 900 days.
The Relative Strength Index (RSI), a critical momentum indicator, suggests bearishness on both weekly and daily timeframes. LINK's creation of a bearish engulfing candlestick further accentuates this trend. However, if LINK surpasses $17.30, it may signal a continued bullish trend.
Elliott Wave theory analysis indicates that LINK may have completed a five-wave upward movement, transitioning into an A-B-C corrective structure. Predicted targets for this correction are $12.50 and $11.05, based on Fibonacci retracement levels. Despite short-term bearish forecasts, some traders remain optimistic about LINK's long-term trend, with expectations of substantial price increases. Surpassing the yearly high could potentially lead to a 40% rise in LINK's price, aiming for the next resistance level at $20
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.