$LINK: Chainlink Analysis: Ready for a Skyrocketing Move? | Key Support Levels

Summary

In this update on Link's market analysis, the key focus is on a potential rally towards a target of $47, driven by Fibonacci extensions. The analysis suggests the ongoing wave structure may be in the third wave, with crucial support levels to watch, especially around the June 22 low. If these levels hold, there is room for continued upside movement, with resistance levels at $17.93 and $23.14. Shorter-term price targets are also discussed, with the ideal range for the fifth wave between $19.00 and $20.00. The video also highlights the importance of key support zones to maintain the bullish outlook.

Takeaways

• 😀 The current analysis suggests a potential rally in LINK towards the $47 level, based on the 100% Fibonacci extension.
• 😀 A key support level is the June 22 low, which must hold for the bullish scenario to remain intact.
• 😀 A break below the June 22 low could signal a larger market correction, with the focus shifting to the April low.
• 😀 The market is expected to unfold in five waves to the upside, with the third wave possibly already in progress.
• 😀 The $17.93 level (swing high from May 12) and $23.14 are key resistance levels to break for further bullish movement.
• 😀 The third wave in crypto can sometimes be very fast and aggressive, which may lead to price action without clearly defined five-wave structures.
• 😀 A micro five-wave move has formed on the smaller time frame, which suggests that a larger move could be unfolding.
• 😀 The price has recently reacted well to micro support in the $14.33 - $15.12 range, indicating a potential upward move.
• 😀 The ideal target for wave five of the third wave is $17.76, though the bare minimum target is $17.15.
• 😀 The video encourages viewers to subscribe, comment, and consider the membership option for more detailed market analysis and insights.

Q & A

What is the primary target for the price of Chainlink (LINK) according to the analysis?

The primary target for Chainlink (LINK) is around $47, which corresponds to the 100% Fibonacci extension level. This is considered a crucial level for the next potential rally.

Why is the $47 level considered a crucial target?

The $47 level is crucial because it represents the 100% Fibonacci extension level, a key technical price point where a significant price move could unfold. While the price might not stop there, it is seen as a reasonable and ideal target for the next larger upside movement.

What is the significance of the June 22nd low for the price movement of Chainlink?

The June 22nd low is important because as long as the price remains above this level, the bullish scenario is considered intact. A break below this low would indicate a structural shift and suggest that a larger correction may be underway.

What would happen if the price breaks below the June 22nd low?

If the price breaks below the June 22nd low, it would signal that the market structure is starting to break down, and the focus would shift to the April low. There would be an increased risk of a larger correction, with the potential for a deeper decline.

What are the key resistance levels to watch for Chainlink’s price?

The key resistance levels are located at $17.93 (the swing high from May 12) and $23.14 (a larger degree five-wave move from March). Breaking these levels would suggest a continued upward movement toward the $47 target.

How is the current market structure described for Chainlink?

The market structure is described as a potential five-wave move to the upside. The current stage could be the beginning of the third wave in this sequence, which is typically the strongest and fastest price movement.

What role does Fibonacci play in the technical analysis provided?

Fibonacci levels are used to identify potential price targets and support/resistance zones. In this analysis, the 100% Fibonacci extension at $47 is highlighted as a key target, and other Fibonacci levels are used to predict the progression of the price within the waves.

Why is the price reaction to the $14.33 - $15.12 support zone important?

The price reaction to this support zone is crucial because it marks a potential fourth wave correction. A successful bounce from this support zone suggests that the market could be setting up for a continued upward movement in the fifth wave.

What is the minimum target for the third wave to be considered complete?

The minimum target for the third wave to be considered complete is $17.15. However, the ideal target is $17.76, which represents a stronger confirmation of the third wave's progression.

How does the speaker recommend handling third waves in crypto?

The speaker suggests that third waves in crypto can be very fast and aggressive, meaning they may not always form clearly defined five-wave structures. Traders should be cautious not to wait too long for a pullback that may not occur, as third waves often move quickly.