ChainLink (LINK), a decentralized oracle network that provides data to smart contracts, has been one of the top-performing cryptocurrencies in recent months. However, according to a recent technical analysis video by Nick, LINK may be due for a short-term correction.
On the 1-hour chart, LINK is showing a zigzag pattern, which suggests a potential downward move. Nick believes that LINK could retest the 200 EMA at around $10.34 before rebounding. However, he emphasizes that LINK should stay above this level to maintain its bullish momentum.
Potential Explosive Move
After the correction, Nick expects a sharp upward move in LINK. He suggests that this move could be explosive, given the zigzag pattern.
Trading Platforms and Risk Management
Nick recommends trading LINK on platforms like Bitg, Mexi, KX, or Bybit. He also emphasizes the importance of risk management, reminding viewers to always use stop-losses and trade with a small percentage of their portfolio.
On the daily chart, LINK is forming a complex WX YX Z pattern. This pattern could lead to another upward push in LINK, according to Nick. However, he also notes that the pattern is not yet complete, so it is important to wait for confirmation before taking any trading decisions.
Bearish Macro View
In the long term, Nick believes that LINK may experience a significant downward move to revisit the previous accumulation range, possibly going as low as $5. This is due to the bearish macro view of the cryptocurrency market.
Nick also provides some educational insights into zigzag patterns and Elliott Wave Theory. Zigzag patterns are a type of technical analysis pattern that consists of five waves, with three waves moving in one direction and two waves moving in the opposite direction. Elliott Wave Theory is a technical analysis theory that suggests that the market moves in five-wave patterns.
Despite the bearish macro view, Nick is bullish on the long-term future of LINK. He believes that LINK has the potential to reach $300 or more in the future.
Engagement and Community
Nick encourages viewers to like, subscribe, and comment on the video for updates. He also promotes joining their crypto community on Discord for discussions and information sharing.