Technical analysis by WaveFibs about Symbol LINK: Buy recommendation (2/4/2025)

Overview 📊This analysis examines ChainLink (LINK/USD) on the weekly timeframe using Elliott Wave Theory and Fibonacci levels to determine potential price movements.🔹 Current Price: $20.66🔹 Key Trend: Impulsive structure in progress🔹 Indicators Used: MACD, RSI, Fibonacci Retracement & Extension🔹 Chart Pattern: Five-wave Elliott structure with potential upside targets1️⃣ Elliott Wave Count 🔍Primary Degree (Macro Trend)📌 The primary Elliott Wave count suggests a classic five-wave impulsive structure:Wave (I): Initial impulse rallyWave (II): Corrective decline, forming a bottomWave (III): Strong expansion wave with key retracement levelsWave (IV): Potential pullback region before the next bullish phaseWave (V): Final expansion phase leading to the macro target zones⏳ Current Progress: Price is in the early stage of Wave (III) within the broader cycle.Intermediate & Minor Degree WavesIntermediate Wave 1 is completed, and Wave 2 retracement is in progress.The 0.382 ($18.57), 0.5 ($15.83), and 0.618 ($13.54) retracement levels serve as possible support for Wave 2 before a continuation move upwards.A bullish reaction at these levels could confirm the start of Wave 3 within the intermediate cycle.2️⃣ Fibonacci Targets & Key Price Levels 📈Primary Wave (V) Extension Targets1.618 Fib Extension: $94.09 (Major target)0.618 Fib Extension: $207.77 (Long-term macro target)These targets suggest a strong potential bullish continuation.Wave (IV) Retracement & Pullback Zones1.236 Fib: $52.79 (Potential resistance)1.382 Fib: $49.17 (Wave IV correction zone)0.382 Fib: $36.90 (Pullback area to confirm higher low)Wave (ii) Retracement (Minor Degree Support)0.382 Fib: $18.570.5 Fib: $15.830.618 Fib: $13.540.786 Fib: $10.81 (Final invalidation level)These act as critical re-entry zones for bullish continuation.3️⃣ Technical Indicators & Confirmation Signals 📊MACD Analysis✅ Bullish Momentum: MACD remains above the zero line, but a short-term correction is in play.✅ Cross Confirmation: A bullish crossover from a lower level would confirm the next upward move.RSI (Relative Strength Index)📍 Current Level: 61.11📍 Overbought Level: Above 70 (watch for potential corrections)📍 Support Zone: 50-55 (if price retraces, RSI staying above this range is a bullish sign)4️⃣ Trade Plan & Risk Management 🎯📌 Bullish Entry Zones:🔹 Between $13.50 and $18.50 (Fibonacci retracement support for Wave (ii))🔹 Confirmation: Watch for MACD crossover & RSI support bounce📌 Target Areas:🔹 Short-Term: $36 - $52 (Wave III Mid-Target)🔹 Long-Term: $94 - $207 (Wave V Extension)📌 Risk Levels:🔹 Stop Loss: Below $10.81 (Wave (ii) invalidation)🔹 Downside Risk: If LINK breaks below $10.81, the structure may need reassessment.5️⃣ Conclusion & Final Thoughts 🚀🔹 ChainLink is currently forming a potential Wave (II) correction before a major impulse move.🔹 If support holds above $13.50-$18.50, a bullish continuation toward $52-$94 is likely.🔹 MACD and RSI will provide further confirmation signals for the next rally.🔹 Traders should monitor Fibonacci support levels and watch for a strong bounce before entering long positions.📢 Let me know if you’d like any further refinements or trade-specific setups! 🚀🔥