ChainLink LINKUSD Long Term Resistance and Bull Trap
Updated
Past months i got a lot of requests to make an analysis on ChainLink, so here it goes :). On the left we can see a very clear buy zone around 1.6, mostly because it got bought again a month ago furing the big crypto crisis, confirming how important this zone is. So think it goes without saying, that if this zone would break, it will be VERY bad news for this coin. But that price is far away now, so not that important at this point.
We can also see that red resistance zone around 3.4/3.5, where it peaked above it yesterday but got rejected at the first attempt. The red zone also looks like a big lon/mid- term resistance, so think it is an important level.
Then when we look at the right, we can see we had quite the bullish shape, in the form of a triangle. With Bitcoins pump to 7200 yesterday it broke up with good volume, but it got sold off with high volume as well, sell volume was maybe even higher. So this is a dangerous situation for the Link bulls. Because we have the high volume buy and sell situation, but mostly because the triangle breakout failed, making the situation very dangerous. Now it's not hopeless, things could of course turn around (since the whole market follows Bitcoin).
From what i can see, the green and red on the right is the neutral zone Link is moving inside of now. If the green breaks, usually means the bull trap is confirmed and we continue to drop. I think the only hope the bulls have left here, if that red zone around 3.45 breaks coming day or so. But if that happens, you want to see a convincing move up, nothing slow or low volume.
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We can also see that red resistance zone around 3.4/3.5, where it peaked above it yesterday but got rejected at the first attempt. The red zone also looks like a big lon/mid- term resistance, so think it is an important level.
Then when we look at the right, we can see we had quite the bullish shape, in the form of a triangle. With Bitcoins pump to 7200 yesterday it broke up with good volume, but it got sold off with high volume as well, sell volume was maybe even higher. So this is a dangerous situation for the Link bulls. Because we have the high volume buy and sell situation, but mostly because the triangle breakout failed, making the situation very dangerous. Now it's not hopeless, things could of course turn around (since the whole market follows Bitcoin).
From what i can see, the green and red on the right is the neutral zone Link is moving inside of now. If the green breaks, usually means the bull trap is confirmed and we continue to drop. I think the only hope the bulls have left here, if that red zone around 3.45 breaks coming day or so. But if that happens, you want to see a convincing move up, nothing slow or low volume.
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