Chainlink at a Critical Crossroads: Triangle Pattern Holds, Key Trendline Break Essential

Chainlink is nearing a pivotal moment as its price consolidates within a clearly defined triangular formation. While this pattern remains intact, market indicators suggest that a significant price movement is on the horizon. The outcome now hinges on whether a crucial trendline is broken—this will determine if LINK is poised for a price increase or if it will face a deeper downturn.

Key Takeaways

Chainlink's price is nearing a decisive moment within a triangular pattern.
A significant trendline must be breached to confirm a potential upward trend.
There are no confirmed low points currently, and a structural reversal depends on price movements above the trendline.
Critical support levels to monitor include $10.70, $8.94, and $6.90.
If the price drops below $6.90, the likelihood of a larger degree correction increases.

This analysis highlights the importance of monitoring Chainlink's price movements closely in this critical phase, with a focus on key resistance and support levels to inform trading decisions.

Chainlink

Examining the B-Wave Correction: Is the Triangle Pattern Holding Up?

In a recent analysis by More Crypto Online, attention is drawn to the broader specifics of Chainlink’s price dynamics. The analyst suggests that the market is currently extending what is termed a yellow B-wave correction. It appears this B-wave may unfold as a complex triangle pattern, represented in the “yellow scenario.”

Despite the triangle's validity, the analyst points out that no definitive low has been established as of yet. A structural reversal will require LINK to present a clear 1-2 setup heading upwards, signaling a new impulsive trend. As noted in previous updates, the formation of a confirmed low relies on a break above the initial yellow trendline.

Chainlink
LINK’s B-wave is expanding | Source: Chart from More Crypto Online on X

The triangle pattern, which conventionally consists of a 5-wave sequence (A–B–C–D–E), remains intact for now, despite the absence of a confirmed low. This pattern suggests continued sideways price movement, putting pressure on both bullish and bearish market participants.

More Crypto Online has identified a significant invalidation point for the primary triangle count. If the price were to slip below the April 4th low of $10.20, the triangle microstructure would be completely invalidated. Although the broader B-wave correction could still occur, it would likely take on a different structural form.

Key Support Levels: $10.70, $8.94, and $6.90

The analysis continues with insights into crucial support levels in case the current triangle pattern collapses. These levels are established at $10.70, $8.94, and $6.90. The analyst warns that if the price breaks below the $6.90 threshold, the chances of an alternative scenario increase significantly, potentially leading to a larger Wave 4 formation for Chainlink.

At this moment, observing how the price interacts within the Fibonacci support zone, framed by $6.90 and $10.70, is essential. The analyst underscores the conditions for marking a structural low: the earliest indication of a price reversal would stem from a break above the yellow trendline. Until this occurs, the trendline will serve as a solid resistance point, ensuring the local downtrend remains structurally sound and signaling that cautious trading is advisable.

Chainlink
LINK trading at $12 on the 1D chart | Source: LINKUSDT on Tradingview.com