Chainlink (LINK) has been trading in a tight range around $8.30 over the last 24 hours, but a new Elliott Wave analysis suggests the period of weakness may be part of a larger corrective structure that could yield a powerful bullish wave. Market analyst Chetan highlighted on X that LINK completed five sub-waves within an expanding diagonal, marking the end of primary wave A in December 2024. The current price action, however, places the token in a corrective primary B wave, testing a key Fibonacci support cluster near current levels.
The chart’s projection indicates a primary C rally could begin once the correction finishes, with the potential path extending well beyond LINK’s recent trading range. This would imply the ongoing consolidation is not a new leg lower but a broader corrective phase, setting up a significant upside move. Fibonacci retracement levels aggregated in today’s zone reinforce the support area.
Intraday, LINK traded between $8.26 and $8.38, with price bouncing multiple times from the low and briefly challenging $8.34 before retreating. Market capitalization stands near $6.22 billion, with a 24-hour volume of approximately $106.77 million. The token remains 84.21% below its all-time high of $52.70.
Short-term momentum indicators show mixed signals. The 1-minute MACD line hovers just above the signal line near zero, while the histogram remains flat, indicating weak momentum. The 14-period RSI is at 43.82, below the neutral 50 level, further confirming cooled-off momentum after an early dip. Trading volume spiked on late-session moves, but LINK holds steady near $8.30. A break above the daily high of $8.38 would strengthen the recovery structure and potentially support the larger Elliott Wave C scenario.
