Chainlink price reached a new yearly high on November 11, but has since declined significantly inside a symmetrical triangle. Let's figure out whether LINK will break out of it
Chainlink forms consecutive bearish candles
The weekly timeframe shows that LINK price fell to a low of $4.78 ( green icon ) in June and has been rising since then. In September, a rising low ( black icon ) formed on the chart, and the growth rate accelerated.
The upward movement culminated in a new yearly high reached on November 11 at $16.60.. The scale of the increase over 56 days was almost 200%.
However, Chainlink has been falling since then, forming consecutive bearish weekly candles.
Source: TradingView
The Relative Strength Index (RSI) is sending mixed signals as it is above the neutral level of 50 but also declining.
What analysts say
Crypto traders and analysts on the X platform are making conflicting predictions.
Thus, CryptoBull believes that the price will rise amid the launch, Staking v0.2. This is an updated Chainlink staking mechanism that will open for the first participants on December 7th, and for everyone on December 11th. The analyst explained:
“After the launch of staking v0.2, even more supply will be blocked. With less supply on the open market and assuming demand remains the same or increases, the price will also increase.”
CryptoPoseidonn is not so confident that the future trend will be bullish. He expects the price to rise in the short term, but believes LINK will eventually return to $1.
4-hour chart LINK/USDT. Source: X
RektCapital also believes that the trend is bearish, as LINK failed to break through the long-term horizontal resistance area of $15.
LINK forecast: is the correction over?
Unlike the ambiguous weekly timeframe, Elliott wave analysis on the daily chart gives a more optimistic forecast.
The most likely scenario suggests that LINK is approaching the end of the fourth wave within a five-wave bullish structure ( white ). The fourth wave has the shape of a triangle. If this analysis is correct, then Chainlink price will soon break the upper boundary of this triangle, starting the fifth wave.
The daily RSI also confirms this possibility. It gives strong hidden bullish divergence signals ( green ).
The top of the fifth wave will most likely be $19, located almost 30% above the current price. This target was found by projecting a channel connecting the tops of the first and third waves.
Source: TradingView
Meanwhile, a bearish breakout from the triangle would mean that LINK continues to correct. In this case, the price is expected to decrease by 25% to the channel support line.