The Chainlink (LINK) price has traded inside a horizontal range since November 2023. It was rejected by the range high four days ago.
The price bounced considerably yesterday but still trades in the lower portion of the horizontal range.
Chainlink Trades in a Range
The daily time frame technical analysis shows that the LINK price significantly increased in September 2023. However, since November, LINK has traded inside a horizontal range. So far, the range has existed for 77 days.
LINK trades in the lower portion of the range after a rejection on January 20, 2024 (red icon) created four successive bearish daily candlesticks.
The daily Relative Strength Index (RSI) gives a bearish reading. Traders utilize the RSI as a momentum indicator to assess whether a market is overbought or oversold and whether to accumulate or sell an asset.
If the RSI reading is above 50 and the trend is upward, bulls still have an advantage, but if the reading is below 50, the opposite is true.
The RSI fell below 50 (red icon) yesterday. Except for a deviation (green circle) in January, the RSI has been above 50 since the upward trend started on September 16, 2023 (green icon).
Read More: What is Chainlink (LINK)?
What do Analysts Say?
Cryptocurrency traders and analysts on X give a mixed view of the future LINK trend. Satoshi Flipper believes LINK will bounce from its range low and increase to $19 soon.
Crypto Tony gives a similar idea. However, Crypto Moose believes LINK will first decrease to $10 or $11. He tweeted:
Don’t be surprised if $LINK drops to $10-$11. Be ready for it I’ll happily accumulate at lower prices Keep your job, have conviction, and stay the course
Read More: How to Buy Chainlink With a Credit Card
LINK Price Prediction: Has the Rally Ended?
The technical analysis from the 3-day time frame suggests that the LINK price will break down from the range. This is because of the wave count.
Elliott Wave theory involves the analysis of recurring long-term price patterns and investor psychology to determine the direction of a trend. The most likely wave count suggests that LINK is in wave four of a five-wave upward movement (white). The sub-wave count is given in black.
If the count is correct, LINK will fall 20% to the 0.5 Fib retracement support level at $11.45. This will also validate the resistance trend line of a long-term ascending parallel channel.
Despite this bearish LINK price prediction, a close above-the-range high of $17 will mean the local bottom is in place. Then, LINK can increase 34% to the next resistance at $19.30.
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