LINKUSD: Approaching Critical Support – Major Move Ahead?Introduction:
As we navigate through 2024, LINKUSDT finds itself at a pivotal juncture. The cryptocurrency has reached a significant support level, and traders are closely monitoring its next move. Will it hold or will we see a substantial correction? Here’s a detailed analysis of the potential scenarios unfolding on different timeframes.
Weekly Timeframe Analysis:
LINKUSDT has reached a crucial support level at $13.1, the most important one for 2024. A breakdown below this level could trigger a sharp correction down to $7. This move would likely lead to a retest of the accumulation zone built over the past year.
Key observations:
Price Action: The price has failed to establish higher highs in the last three peaks.
RSI Divergence: The RSI is forming lower highs, signaling weakening momentum.
Volume Analysis: Decreasing volume during the formation of the accumulation box indicates low buying interest.
Given these factors, there's a strong possibility that the accumulation box will break to the downside.
Daily Timeframe Insight:
A head and shoulders pattern appears to be forming on the daily chart. The price is currently testing the neckline. Should the $13 support fail and a daily candle closes below this level, we could see a significant correction – potentially around 40%, aligning with the head and shoulders target.
4-Hour Timeframe Outlook:
In line with the bearish higher timeframes, if a candle closes below $12.97 on the 4-hour chart and the RSI enters the oversold territory simultaneously, it could signal the start of a new bearish wave. The first target for this move would be $10.63.
Conclusion:
LINKUSDT is at a make-or-break point. The critical support levels identified across multiple timeframes suggest that traders should be prepared for significant volatility. Whether it’s a breakdown or a rebound, these levels will be crucial in determining the next major move for LINKUSDT. Stay vigilant and adjust your strategies accordingly.
Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Always do your own research and consult with a financial advisor before making any investment decisions.
