In the world of altcoins, anticipation is mounting as traders eye the conclusion of a pivotal correction phase. Charting Guy, one of the leading crypto experts, commented that every altcoin, including Chainlink (LINK), since mid-2023, almost had the same graphs as wave 1, having huge rallies that topped out in March 2024.
Much of these gains have been destroyed during the last five months, as wave 2 corrections take hold. There are now increased hopes that these corrections are not too far from their end.
For those watching closely, the final stages of this wave 2 correction are playing out. In particular, Charting Guy highlights Chainlink (LINK as a prime example. So far, three of the five waves within the C wave of wave 2 have been completed, suggesting that one more dip could occur between mid-August and mid-September.
This drop could find support anywhere between the 0.136 and 0.236 Fibonacci levels, approximately $6.80 to $8.62. Once this correction concludes, a massive wave 3 rally is expected, which could trigger a rapid and intense surge across altcoins in the fourth quarter.
According to the Charting Guy, these wave 3 movements usually prove very fast and aggressive, often creating a frenzy of FOMO among investors. The rallying timeline could easily align with the expected Federal Reserve rate cuts around the fall eclipses, which, for him, is way too far from a mere coincidence.
Critical Levels for Chainlink Continued Bullish Momentum
In a similar vein, trader TradeDevils, sharing Sensei Wonka’s experience, offered a bullish perspective on Chainlink (LINK. Wonka said that he has been buying around the $12.710 region because of the regular scale golden zone. This golden zone got hit precisely at around $8-$9, a level that he believes would turn out to be crucial for its bullish continuity.
He added that the first thing he wants to see is the reclaiming of the $12.710 level for support and a strong uptrend confirmation. On the other hand, he felt a fifth wave missing in completing a double bearish sharp zigzag pattern. Assuming LINK closes this week below $9.394, another test of the golden zone, which was around $8.048, could be expected, Wonka said.
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