The Chainlink (LINK) price bounced on January 8, saving a breakdown and creating a bullish candlestick.
The price still trades within the confines of a long-term pattern that has existed for 120 days.
Chainlink Deviates Below Range Low
The technical analysis from the daily time frame shows that the LINK price has traded in a horizontal range since November 8, 2023.
More recently, the price deviated above the range high on December 28, when it had just reached a new yearly high of $17.68 (red icon). LINK has fallen since.
The decrease led to a low of $12.53 on January 8, 2024. While this seemingly caused a breakdown from the range, the price regained its footing afterward, creating a bullish candlestick (green icon) and reclaiming it.
Despite the reclaim, the daily Relative Strength Index (RSI) gives a neutral reading.
When evaluating market conditions, traders use the RSI as a momentum indicator to determine 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 daily RSI is at 50, a sign of an undetermined trend.
Read More: How to Buy Chainlink With a Credit Card
What Do the Analysts Say?
LINKPULLER noted that the Grayscale Chainlink Trust is trading at a premium, suggesting that the LINK price will soon catch up.
The CryptoBull believes that after Bitcoin (BTC) and Ethereum (ETH), LINK is the next in line for an ETF:
Finally, the Chainlink team announced that there were 15 integrations for Chainlink in the last month, tweeting:
There were 15 integrations of 6 #Chainlink services across six different chains:
The integrations include PancakeSwap (CAKE) and Aspis Protocol. Finally, more than 1.2 million LINK tokens were purchased by whales yesterday.
Read More: What is Chainlink (LINK)?
LINK Price Prediction: When Will Price Reach $20?
While the daily time frame price action is undetermined, the wave count gives a bullish reading.
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 the fifth and final wave of its upward movement that started in June. Wave four ended with the bounce on January 3, confirmed with the bullish candlestick on January 8 (green icons).
If the count is correct, the two most likely targets for the movement’s top are $23.40 and $30.40. They are found by giving wave five 0.382 and 0.618 times the length of waves one and three combined.
The first target is 65% above the current LINK price, while the second is 115% above it. The latter will also coincide with the resistance trend line of an ascending parallel channel and a horizontal resistance area.
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