Chainlink (LINK) Gains Momentum: Elliott Wave Analysis Signals Continued Upside Toward $16.60

Chainlink's LINK token is building serious momentum, with technical analysis pointing to a clear path higher.

The Pattern Points Up

Elliott Wave Theory—a favorite among chartists who believe market psychology moves in predictable cycles—is flashing a bullish signal for LINK. The current wave structure suggests the rally is far from over, targeting a move toward the $16.60 level. It's the kind of technical setup that gets traders leaning forward in their chairs, even as fundamentalists scoff at 'reading tea leaves in price charts.'

Beyond the Lines on a Chart

The technical breakout coincides with growing utility. Chainlink's oracle networks are becoming critical plumbing for decentralized finance, feeding real-world data to smart contracts that manage everything from loans to insurance. As that ecosystem expands, so does demand for the LINK token that secures it. It's a classic case of infrastructure catching up to hype—a rare event in crypto that usually involves more promises than products.

The Target in Sight

All eyes are now on that $16.60 marker. A clean break and hold above that level could open the door to further gains, validating the wave count and attracting more momentum capital. Of course, in a market where 'irrational exuberance' is often considered a business model, a solid technical foundation is a welcome change. The path is charted; now we see if the market follows the script.

Elliott Structure Signals Bullish Continuity

According to crypto analyst @Morecryptoonl, Chainlink maintains a bullish Elliott structure after completing a correction and rebounding strongly from the demand zone at $12.11 – $11.84, aligned with key 61.8%, 78.6%, and 88.7% Fibonacci levels. Buyers retained control, the price broke resistance, and momentum strengthened. As long as the structure holds above $12.40 – $12.10, bullish sentiment remains dominant.

Wave 1 and Wave 2 appear to be completed, and the price is moving forward in the impulsive Wave 3, with clearly defined sub-waves supporting the uptrend. A temporary pullback in Wave 4 has developed, and the price is moving upward. Remaining above the $12.40-$12.10 maintains the positive trend, while a breakout below $11.80 may lead to a loss of validity.

Upside Fibonacci extension levels are well-defined, with the 100% level at $15.08, 123.6% around $16.01, and the 138% level near $16.60, in addition to significant resistance around the 38.2% level at $15.75. These levels serve as profit-taking and reaction levels. A breach of $11.80 WOULD thus undermine the bullish scenario and present further levels of support.

Falling Wedge Builds Long-Term Optimism

According to another crypto analyst, @DonWedge, chainlink is currently in a repeating falling wedge formation, which is similar to the formation before the previous rally. The price is currently consolidating in a strong accumulation zone between $9 and $12.50, where the buyers are actively absorbing the selling pressure. Above this zone, the price is indicating stability, which will help it turn around and move into a bullish trend.

The breakout above the declining resistance trendline would unleash the buying momentum. The initial level to be reclaimed would be $14-$15. The major level of confirmation would be $18. A sustained MOVE above this level would pave the way towards $22-$23. But failure to retain the accumulation area with a close below $9 would erode the positive view.