Yesterday the evaluation of the cryptocurrency market cap was around $117,3B at the open and from there it started increasing again when it reached $124,827,712,833 at its highest point yesterday. From there evaluation has been steadily declining throughout most of the day as the second minor retracement is currently developing.
- Market Cap: $123,250,931,397
- 24h Vol: $17,463,865,234
- BTC Dominance: 52.3%
The market was mostly in green but has now started showing mixed color as the evaluation fell back in the last hour to the lower levels of the current minor declining structure. The average percentage of change is from 0.3%-3%. The biggest gainer today is Chainlink with an increase of 18.70% in the last 24 hours followed by Stratis with an increase of 10%.
Chainlink Price LINK/USD
From December 17th the price of Chainlink has been in a strong uptrend and has managed to come from $0.206 all the way up to $0.548 at its highest point yesterday which is over 157% increase in a little less than a month. The price is currently sitting at $0.5256 which is an overall increase of 152% so far. Since the price has recovered so much, the question imposes – has the price of Chainlink reached its upper levels for now?
From yesterday’s low at $0.4294 the price of Chainlink has increased by 27.68% measured to its highest point today which was at $0.5470. The price has pulled back slightly since and has come down back to the 0.786 Fibonacci retracement level where it has retested it for support. For now, the support looks like its holding the price but I would be expecting further struggle around the level and a potential dip below it before one more wave to the upside.
My Elliott wave count implies that the current upward movement is the 5th wave which started on 11th of January when the price of ChainLink was $0.3578, from a Minor 12345 which started on 17th of December last year. I have counted the sub-waves and as you can see from the chart above one more wave to the upside is expected before this uptrend has ended as I have counted only 3 waves from lower degree count.
The current 3rd wave will most likely continue moving higher to approximately half of the range between the 1 and the 0.786 Fibonacci level before the start of the corrective 4th wave which would most likely end on the 0.786 Fibonacci level again. The expected target for the end of this impulsive move would optimally be at the 1 Fibonacci level which is in the price terms at $0.611 or where the previous high was.
Zooming out to the 4-hour chart you can see that the after the move to the upside end More downside for the price of Chainlink is expected as this was the first impulsive move after a WXY correction which lasted from May last year and ended as a running flat.
This was very much expected and was projected on August 22nd in the analysis post when I have posted this projection below. I was expecting that the WXY would end up as a Zigzag which is why my X wave target was around 0.618 and I was expecting to see a lower low as the Y wave if Zigzag correction would end up lower.
For those who don’t know there are three kinds of flats and as you can see from the picture on the right the correction that is knowns as a running flat, ends slightly higher than the ending point of the first wave which you can see was the case.
Now that the correction ended the impulsive move to the upside developed like it is supposed to according to the Elliott Wave theory, and since the upward move looks like it is close to its completion I there is a correction coming for the price of Chainlink which could follow the expected downside for the cryptocurrency market in general.
Zooming out to the daily chart you can see that the three consecutive corrections ended which is a higher degree WXY and as the Y wave ended and an impulsive move to the upside started, we can start to think that the price of Chainlink has started moving out from its bear market as its currently around a third of the range from since it hit the market to its all-time high.
This could very well be the second wave X or the start of another correction which could push the price of Chainlink back to the levels from where it started increasing because if it was then the final 5th, Z wave should develop to the downside.
In either case, in the short-term more upside is expected for the price of Chainlink while afterward we are going to see a downtrend so I would be expecting to see the price to at least 0.382 Fibonacci level or in price terms around $0.338