Chainlink may be approaching a correction at $9.29
Chainlink has been on an incredible run as of late, and I’ve been looking for patterns to predict when this may finally reach it’s peak and enter a correction. What I’ve found suggests we may see that peak around $9.29298. Looking at the 4 hour chart it seems as if the current uptrend is on the 5th wave of a 5 wave Elliot impulse wave pattern.
The current trend starts at $4.89293. In order to estimate where this may end, I applied Fibonacci lines such that they line up with support and resistance levels that have already occurred. I came up with the following 5 waves (white lines in the chart):
Wave 1 meets resistance at the 0.382 fib line.
Wave 2 finds support around the 0.236 fib line.
*(Here, the chart toggles between using this as support, then resistance, then finally support to head further up as wave 3).
Wave 3 meets resistance at the 0.786 fib line.
Wave 4 finds support around 0.5.
We are currently in wave 5. Wave 5 did show two shooting star candles (bearish) at the 0.786 fib line indicating it was possibly going to hit resistance there, but it seems to have pushed on past. The current 4 hour candle looks to be sitting comfortably above 0.786 and using it as a new support. If this candle closes up, I would expect one last push to the 1.000 fib line which lies around $9.292928. I would then expect a correction to start.
There are also wave-in-wave patterns that increase my confidence in this model and I’ve noted these below. (Note, for the overall wave pattern, I have used thick white lines. For the smaller wave-in-wave patterns, I have used thin green lines during the uptrends and thin red lines during the corrections):
*Within each of wave 1, 3 and 5, we see smaller underlying 12345 Elliot wave patterns. These are marked with thin green lines on the chart.
*Within waves 2 and 4 we see Elliot correction waves. These are marked with thin red lines. Notably, wave 2 has 5 waves within it, whereas wave 3 has 3 waves within it. This follows and alternating harmonic pattern that can be seen when comparing successive correction lines.
In summary, several patterns suggest that we may enter a correction around $9.29298. We should be watching for candle patterns indicating a possible reversal at that level. This may be an ideal time to sell and protect profits, then wait for an entry point during the ensuing correction before buying more and riding the next wave up.
The current trend starts at $4.89293. In order to estimate where this may end, I applied Fibonacci lines such that they line up with support and resistance levels that have already occurred. I came up with the following 5 waves (white lines in the chart):
Wave 1 meets resistance at the 0.382 fib line.
Wave 2 finds support around the 0.236 fib line.
*(Here, the chart toggles between using this as support, then resistance, then finally support to head further up as wave 3).
Wave 3 meets resistance at the 0.786 fib line.
Wave 4 finds support around 0.5.
We are currently in wave 5. Wave 5 did show two shooting star candles (bearish) at the 0.786 fib line indicating it was possibly going to hit resistance there, but it seems to have pushed on past. The current 4 hour candle looks to be sitting comfortably above 0.786 and using it as a new support. If this candle closes up, I would expect one last push to the 1.000 fib line which lies around $9.292928. I would then expect a correction to start.
There are also wave-in-wave patterns that increase my confidence in this model and I’ve noted these below. (Note, for the overall wave pattern, I have used thick white lines. For the smaller wave-in-wave patterns, I have used thin green lines during the uptrends and thin red lines during the corrections):
*Within each of wave 1, 3 and 5, we see smaller underlying 12345 Elliot wave patterns. These are marked with thin green lines on the chart.
*Within waves 2 and 4 we see Elliot correction waves. These are marked with thin red lines. Notably, wave 2 has 5 waves within it, whereas wave 3 has 3 waves within it. This follows and alternating harmonic pattern that can be seen when comparing successive correction lines.
In summary, several patterns suggest that we may enter a correction around $9.29298. We should be watching for candle patterns indicating a possible reversal at that level. This may be an ideal time to sell and protect profits, then wait for an entry point during the ensuing correction before buying more and riding the next wave up.
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