While many cryptocurrencies are in an accumulation phase according to Wyckoff theory, $LINK seems to have completed this stage and is kicking off a period of bullish growth. In this article, we will dive into a deep technical analysis backed by Elliot Wave Theory to understand why this cryptocurrency is destined to experience exponential rise. We will unravel not only how far it could go, but also how investors can capitalize on these moves to maximize their profits.
When investors explore the price of an asset, it is common for them to come across charts showing candlesticks, volume indicators, and possibly other indicators. However, this information is often not enough to make informed decisions. To approach this activity with the seriousness it deserves, the first crucial step is to identify in which phase the market is.
Let us remember that the market is made up of four phases which are Accumulation, Boom, Distribution and Decline; In this case we have identified that the asset is in the accumulation phase which operates with Wyckoff's accumulation theory.
Brief explanation of Wyckoff accumulation.
The Wyckoff accumulation phase is a stage in the financial market cycle where informed investors begin to accumulate an asset at relatively low prices. During this phase, the price tends to consolidate in a tight range after a period of decline. This indicates that selling pressure is decreasing and that there is growing interest from knowledgeable investors in the asset.
"In the case of Chainlink (LINK), we have observed how the Wyckoff structure has been taking shape since April 2022. In the last week, it achieved the breakout of the resistance marked by the Bullish Rally (AR) of the first phase. This milestone is a key indicator that confirms the completion of the accumulation phase, marking the beginning of the bullish trend phase or boom, which we will address using Elliot wave theory.
It is important to note that although the current move will continue on this bullish trajectory, we have not yet witnessed the formation of the Last Point of Support (LPS), also known as a pullback. This event is essential as it confirms that the breakout of the AR resistance is now acting as support.
If you want to delve deeper into Wyckoff's accumulation theory, I recommend Solana Analysis and the content that I have shared on yt.
In order not to make this article so extensive, in the continuation we will analyze where the rejection of this momentum that is being generated is likely to occur, as well as where we will identify the support, why link is destined for an exponential increase, growth predictions Entries Targets and Stop Losse and finally how to take advantage of the next movements. This will allow us to fully delve into the study of Elliot waves and make the most of this bullish cycle of Chainlink (LINK)."
Note: This article provides an updated perspective and does not constitute financial advice. Always consult a financial professional before making investment decisions, remember to subscribe if the article has provided you with clarity and perspective, I invite you to consider a small tip as a gesture of appreciation.
