Chainlink Elliott Wave technical analysis [Video]
![Chainlink Elliott Wave technical analysis [Video]](https://editorial.fxsstatic.com/images/i/CHAINLINK_XtraLarge.png)
LINK/USD – Elliott Wave technical analysis
Function: Follow trend.
Mode: Motive.
Structure: Impulse.
Position: Wave 3.
Direction next higher degrees: -
Wave cancel invalid level: $13.00.
LINK/USD trading strategy
After completing corrective wave 2 with a clear ABC pattern and holding above key support, Chainlink (LINK) is showing bullish momentum. This bounce suggests the early stages of wave 3, often the strongest in an Elliott Wave sequence. A 1.618 Fibonacci extension of wave 1 places the potential wave 3 target at $26.24. Sustained strength above the channel midpoint increases the likelihood of reaching or exceeding this level. The critical technical level is $13.00-a drop below this invalidates the current wave structure and requires a recount.
- If LINK dips to the $15–$16 range, this could be an ideal entry for wave 2 of 3.
- $13.00 is the wave cancelation level-falling below this means the current wave count is invalid.
Trading strategies:
Strategy
- For swing traders: Look for entries around $15–$16 if the price pulls back, aiming to join the developing wave 3.
Risk management
- Exit or reassess if price falls below $13.00, as this invalidates the current wave structure.
LINK/USD – Elliott Wave technical analysis
Function: Follow trend.
Mode: Motive.
Structure: Impulse.
Position: Wave 3.
Direction next higher degrees: -
Wave cancel invalid level: $13.00.
LINK/USD trading strategy
LINK has successfully completed wave 2 correction and remains above support. This bounce could signal the onset of wave 3-commonly the most aggressive wave in an impulse sequence. If wave 3 extends to 1.618x wave 1, the projected target is $26.24. Staying above the mid-channel zone increases the probability of hitting or surpassing this target. The $13.00 level is critical for the wave structure. A decline below this point invalidates the current Elliott setup.
- Consider entries around $15–$16 if prices dip-likely wave 2 of 3.
- $13.00 is the invalidation point for this wave count.
Trading strategies:
Strategy
- For swing traders: Enter long trades after a confirmed reversal in the $15–$16 area, targeting the next move of wave 3.
Risk management
- Close positions if price falls below $13.00, as this invalidates the bullish wave structure.
LINK/USD – Elliott Wave technical analysis [Video]
Author
Peter Mathers
TradingLounge
Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.
