Panic Selling LINK? Here’s Your Master PlanBuckle up! LINK has been riding a relentless bearish trend for 113 days, ever since it kissed its peak of $30.94 back in December 2024. With economic uncertainty casting a shadow over the markets and fear gripping investors, the big questions loom: Is this the dip to buy while others panic-sell? Or is it wiser to sit on the sidelines? Let’s slice through the noise, dissect LINK’s chart like a seasoned pro, and uncover the setups that could turn this chaos into opportunity. Let’s dive in!
The Big Picture: LINK’s Bearish Blueprint
LINK is currently trading at $13, a far cry from its yearly open of $20. April has kicked off, and LINK has already surrendered the monthly open at $13.5, a critical level now acting as a brick wall overhead. Zooming out, the trend is unmistakably bearish: lower highs and lower lows dominate the chart. Adding fuel to the fire, LINK is languishing below the Point of Control (POC) at $14.32, derived from a 1.5-year trading range. This is a market screaming caution for bulls and whispering opportunity for bears, at least for now.
But charts don’t lie, and they’re packed with clues. Let’s map out the key levels, pinpoint trade setups, and arm ourselves with a plan that’d make even the most seasoned traders nod in approval.
Resistance Zones: Where Bears Sharpen Their Claws
1.) Resistance - The Golden Pocket ($13.6 - $13.7)
Using the Fibonacci retracement tool on the latest downward wave, the golden pocket (0.618 - 0.65 Fib) aligns beautifully with the monthly open at $13.5. Oh wait there’s more, this zone overlaps with a Fair Value Gap (FVG), making it a magnet for price action.
Trade Setup (Short):
Entry: ~$13.5 (if price tests and rejects this zone).
Stop Loss (SL): Above the recent swing high at $14.4.
Take Profit (TP): First target at $11.85 (swing low), with a stretch goal at $11.
Risk-to-Reward (R:R): A solid 2:1.
The Play: If LINK crawls up to this resistance and gets smacked down, bears can pounce. Watch for rejection candles (e.g., shooting star, bearish engulfing) to confirm the move.
2. Key Resistance - Cloud Edge & VWAP ($15.74 - $16.5)
The Cloud edge of my indicator sits at $15.74, while the anchored VWAP (from the $26.4 high) hovers at $16.5. A break above $16.5 would flip the script, snapping the bearish structure and signaling a potential trend reversal.
Bullish Scenario: If bulls reclaim $16.5 as support, it’s a green light for a long trade. Until then, this is a fortress for bears to defend.
The Play: No bullish setups here yet.
Support Zones: Where Bulls Build Their Base
1.) Support - Swing Low ($11.85)
This is the first line in the sand for bulls. A potential Swing Failure Pattern (SFP), where price dips below $11.85, sweeps liquidity, and reverses—could spark a long trade.
The Play: Watch for a bullish reversal candle or volume spike here.
2.) Major Support Cluster - The Golden Zone ($10 - $11.85)
This is where the chart sings a symphony of confluence:
Swing Low: $11.85.
POC: $11.33 (1.5-year trading range).
Monthly Level: $11.02.
Fib Retracement: 0.886 at $10.69 and 0.786 (log scale) at $10.77.
Psychological Level: $10.
Trade Setup (Long):
Entry: Dollar-Cost Average (DCA) between $11.85 and $10.
Stop Loss (SL): Below $10
Take Profit (TP): First target: $13.5 (monthly open), stretch goal: $20 (yearly open).
Risk-to-Reward (R:R): A monstrous 6:1 or better, depending on your average entry. This is the kind of trade we are looking for!
The Play: Patience is key. Wait for confirmation—think bullish engulfing candles, a surge in volume, or positive order-flow momentum. This isn’t a “hope and pray” trade; it’s a calculated ambush on the bears.
Market Structure: Bears Rule, But Bulls Lurk
Right now, LINK’s chart is a bear’s playground—lower highs, lower lows, and no bullish momentum to speak of. The $16.5 VWAP is the line in the sand for a trend shift, but until then, short trades take priority. That said, the $10 - $11.85 support zone is a coiled spring for bulls. If fear drives LINK into this range, it’s time to load the boat with longs—provided confirmation aligns.
Your Trading Edge
LINK’s 113-day bearish descent is a wild ride, but it’s not random chaos—it’s a roadmap. Bears can feast on rejections at $13.5 - $13.7 with a tidy 2:1 R:R short. Bulls, meanwhile, should stalk the $10 - $11.85 zone for a high-probability long with a 6:1+ R:R payoff. Whether you’re scalping the dips or swinging for the fences, these levels give you the edge to trade with confidence.
So, what’s it gonna be? Short the resistance and ride the wave down? Or stack bids at support and catch the reversal of a lifetime? The chart’s laid bare—now it’s your move. Drop your thoughts below, and let’s conquer this market together!
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Happy trading =)
