Technical analysis by Phillipklh about Symbol LINK: Buy recommendation (8/6/2025)

From an Elliott Wave perspective, there are currently three valid scenarios for Chainlink’s price action. Two of them are bullish across the short-, mid-, and long-term timeframes, while one scenario allows for a deeper correction in the short- to mid-term before the broader uptrend resumes. The favoured scenario suggests we are in the early stages of a Wave 3 impulse, following a clean Wave 2 retracement that reached the 0.5 Fibonacci level — a textbook technical setup. This interpretation is supported not only by the internal wave structure but also by similarities to other crypto assets showing impulsive characteristics. Additionally, there is notable liquidity sitting above the current price, which could act as a magnet for a Wave 3 extension. Accumulation zones and bullish order blocks are also forming on correlated assets like Solana, and Cardano is showing a near-identical wave structure — a setup that has proven reliable in previous cycles. The shift in funding rates from negative to positive supports this bullish thesis, indicating growing confidence among long-positioned traders. However, it’s worth noting that open interest has not yet increased in parallel, suggesting a lack of conviction or participation from larger players at this stage — a divergence that deserves close monitoring. The liquidity heatmap shows clusters of stop liquidity above the current price — consistent with a bullish breakout — but also highlights resting liquidity below. In this context, it is crucial that the current local low holds. Ideally, price should break above both the Wave B and Wave 1 highs to confirm upward momentum and invalidate the bearish alternative. In the bearish scenario, the structure would still be considered corrective, targeting a retest of the $12 region before any sustainable bullish continuation. This would represent a deeper Wave 2 or Wave B retracement, shaking out weaker hands before the next leg up. From a risk/reward perspective, current levels still offer a compelling long opportunity — but invalidation below the recent low would open the door to the $12 area. Until then, the impulsive structure remains intact and favoured.