WHY IS LINK PUMPING TODAY?Why is Chainlink BINANCE:LINKUSDT pumping today?
Last month, I forecasted this coin on reach to a year-long resistance and to watch out for a potential breakout or pump in the upcoming weeks.
Now, BINANCE:LINKUSDT pumped because of a year-long breakout , that's 16 months to be exact.
What should we do next?
Scalping either long or short would be best in my opinion but be sure to have a setup for that strategy. For intraday traders, be patient for finding some possible bullish patterns (mini resistance breakouts, head and shoulders, cup and handle) as the coin is still in an uptrend. Take note, we can see retracements for the coin price, as the price would wait to be stable from the yearly breakout.
From a technical standpoint, I would rely on identifying a common resistance for a potential take profit area.
I find the $11,446 resistance line convincing since it presents strong support and could be a new resistance line for the coin (click the chart above for better quality) . Another would be at near $12 range, based on the fib retracement of .382 from its all-time high.
This would take possibly a week or more in order to reach that price that I've mentioned.
If you entered the breakout, congratulations! Now, you need to do set a protective stop profit in tranches.
Plot your support line because that will be a guide in taking partial stop profits. In this case, I would plot a diagonal support line. If a breakdown happens with confirmation of candles and your indicators, you could take a bit of your profit OR for those who did not enter, execute a scalp short play and plot your Fibonaccis.
I'll add more forecast to this idea but will update you in the comments section.
Thanks to those who are supporting my past ideas, means a lot. Feel free to comment your questions or suggestions and please follow my profile on this platform for more of this and possibly add more trading content.
PLAN your trades, happy trading!
Linkbreakout
LINK: About to reach a year-long resistanceIn this chart, BINANCE:LINKUSDT is inching closer to a critical level wherein the coin is about to touch a year-long resistance line dating back to June 2022. The highlights shown are the instances of the price breakout rejection, making it the strongest resistance for the year.
In my view, a breakout is possible if we see a candle confirmation along with a good buy volume and other indicators continue showing bullishness of the coin.
What should we do then if it breaks out? Identify your nearest support. I would do the process by backtesting as well as plotting retracements, and presented in horizontal lines are the potential resistance lines based on mentioned processes, a given of which is the Fibonacci retracement of .382 level from its all-time high (ATH) to its low level of approximate $7.60.
On the other hand, a rejection could happen based on the RSI being near the overbought territory, an indication of potential selling. For visual reference, check the vertical line on the July 2022 price.
Should you trade this coin now? You could do a scalp if you have the setup, scalp long for me since the trend is still upwards. For intraday traders like me, I would wait until it hits on the resistance line or common support breakdown.
Always have a plan whenever trading by identifying our take profit areas and stop loss. Happy trading!