Chainlink wave 4 & 5 forming: what's next for LINK?

02 Jul, 2019
by Lourens Pepler
Price Analysis
Chainlink wave 4 & 5 forming: what's next for LINK?

The best performing coin of this year, Chainlink, has proven once again why it is the best, by providing large gains in a short period of time recently. Since our target of 37k sats has been hit, we today look at what lies ahead for ChainLink and to see what support levels might be reached. This is the ChainLink Analysis for 2 July 2019.


- 37k sats target hit

- Wave 3 completed

- Wave 4 Support at 20k sats

Starting off by comparing our larger time frame analysis from 7 June 2019 to today's chart, we can see that ChainLink has been following the Elliott Wave structure perfectly by expanding all the way to our target of 37k sats completing wave 3 of the 5 wave structure.

LINK/BTC chart provided by Tradingview

Since our target has been hit at an important Fib level and wave 3 has been completed, this indicates that ChainLink should now start retracing back towards the top of wave 1 near 16k sats as it forms wave 4. 

LINK has been performing super well, leading us to believe it might not reach as far down as the top of wave 1, but will only manage to reach the Fib line above it near 20k sats, making it our main target or entry level for LINK.

Wave 4
We won't go over all the details about Elliott Wave theory as we discussed all the rules in our higher time frame analysis - read more here - but what's important to know is that wave 4 is not allowed to retrace further then the top of wave 1. So far we have not seen a sharp decline for LINK, but since wave 3 moved up sharply it could indicate that wave 4 might decline sharply towards our support level. Since it took roughly 2 months for LINK to rise from below 10k sats to 37k sats, leads us to believe that we might see a 2 month decline for LINK during this wave 4 retracement.

Once Wave 4 is completed, we will again take a look at ChainLink to analyse it on a smaller time frame, to see if we are able to spot the smaller Elliott Wave structure within the larger Wave set to secure our positions for the 5th and final impulse wave.

Have you sold you LINK yet taking some profits from this crazy run, or are you holding until the entire wave set has completed? Let us know what you think the comments below!

Disclaimer: Keep in mind this not investment or trading advice, just the opinion of our analysts. As always, do your own research, make your own decisions.

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