Chainlink is currently trading at critical levels, especially with regard to anticipated price targets. At present, the market appears to be completing a deep Minor Wave 2, which would place us just before the start of a dynamic upward move — a Wave 3 across multiple cycle degrees. However, it is important not to trade the future but to assess and respond to what is happening right now. Fetch.ai, for example, failed to hold its structure and broke lower, resulting in a corrective formation. Given the correlations with other altcoins that are also correcting, we must approach the current setup with the highest level of caution. A break below the red-dashed line marking the low of Wave 1 would invalidate the bullish count, turning the structure corrective and resetting us into Intermediate Wave 2 instead. For now, only 1H timeframe indicators are signaling a potential breakout, which is not strong enough evidence to confirm a sustainable move.
At the highlighted Fibonacci extension level, however, a large cluster of orders is sitting, which could act as a buy wall and provide the foundation for a potential breakout. The liquidity heatmap remains relatively empty, with little liquidity both above and below, keeping the picture neutral.
Derivative data shows funding rates in the normal positive range, while open interest has stagnated with a slight downward bias — a subtle short signal in itself.
In summary, I will closely monitor the current situation and consider positioning on the long side if conditions confirm.
