In a recent video, Nick a cryptocurrency analyst and trader discusses the recent price action of Chainlink (LINK) and analyzes potential future movements based on technical analysis.
- Chainlink’s price has shown an impulsive break to the upside on the 1-hour timeframe.
- Nick emphasizes the volatility of Chainlink and its dependence on demand from decentralized applications (dApps) and other protocols.
- The current structure suggests a five-wave impulsive break, with the speaker noting a potential three-wave bounce upwards and another five-wave move down.
- Various scenarios are considered, including a 535 or a 53535 pattern, with attention to Fibonacci retracement levels.
- Wave 4 is not allowed to cross the peak of Wave 1 in an impulsive pattern.
- Potential price targets for Chainlink are discussed, with considerations for both long and short trading opportunities.
- Nick anticipates further downside in Chainlink’s price action, possibly leading to new bear market lows.
It is important to note that the analysis presented in this article is not financial advice. Investors should always do their own research before making any investment decisions.
Nick also emphasizes the volatility of Chainlink and its dependence on demand from decentralized applications (dApps) and other protocols. This suggests that Chainlink’s price may be more susceptible to market fluctuations than other cryptocurrencies.
Traders who are considering taking long or short positions on Chainlink should carefully consider their risk tolerance and investment goals.