Chainlink (LINK) reached a new annual high on December 8, rising to $17.32. However, since that time, the price has started to decline and is now approaching an important support level. Let's take a closer look at whether it is possible that the LINK price will recover or break through the support level.

Chainlink price Rollback from Annual High:

The weekly chart shows that LINK successfully overcame long-term horizontal resistance in October and began to grow rapidly. Last week, the price reached a new annual high of $17.32.

Despite the growth, the price dynamics this week were rather bearish. The token formed a bearish absorption candle, which was the third case of such an event on the upward movement path.

The relative strength index (RSI) is above the neutral level of 50, but is falling and has just crossed the level of 70, which may indicate a weakening of momentum.

Analysis of analysts' opinions:

Many cryptocurrency traders and analysts on the X platform express optimism about the future of LINK. For example, SteVe believes that if the price breaks through the key long-term resistance, it can reach historical highs.

RektCapital also shares this point of view and claims that "Chainlink has made a bullish breakout from the pattern, now we need to retest its top to fully confirm the breakout."

InmortalCrypto sees a bullish signal in the short-term price deviation from the minimum and subsequent recovery.

LINK forecast and end of correction:

According to Elliott's wave analysis, a possible scenario suggests that LINK is in the fourth wave of a five-wave upward movement that began in June. After the third wave, the price started a correction.

The first potential target for completing the correction may be the $12.75 level, where the Fibonacci retracement level of 0.382 and the support line of the short-term ascending channel are located. This may lead to a price reduction of 12% from the current level.

If LINK breaks through the support level, its price may fall by 20% and complete the fourth wave at the Fibonacci retracement level of 0.5, about $11.40.

While a bullish LINK breakout from the channel will mark the beginning of the fifth wave, which could lead to a 90% price increase to the next resistance at $27.