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Market Direction

Is a breakout on the horizon for LINK?

Updated: Aug 13, 2024
Published: Oct 30, 2023
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LINK has had an impressive rally, but it now looks like it’s beginning to find some resistance. But before we jump to conclusions, let's not forget the overarching strength of the market. After all, we've witnessed surprises before.

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Could LINK be setting the stage for an unexpected twist in its narrative?

TLDR

  • LINK faces resistance, but market strength suggests there’s room to run.
  • Signs of exhaustion are present, but broader strength can't be ignored.
  • A wedge formation may pave the way for a potential breakout to $13.38.
  • Overbought indicators and high open interest warrant caution, but context matters.
Disclaimer: Not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results. “One Glance” by Cryptonary sometimes uses the RR trading tool to help you quickly understand our analysis. They are not signals, and they are not financial advice.

Technical analysis

LINK does look phenomenally exhausted here, but we did say the same for SOL, and look at that. Again, the overall market strength should be respected. 

LINK is forming an unclean wedge here that, like SOL, could break to the upside. The target for this would be $13.38. 

LINK 12-hour 
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RSI and funding rates

The RSI remains heavily overbought while also creating bearish divergences – we are always cautious of this setup. However, seeing the overall market strength, so we now place less importance on it. This rethink is particularly important when we see how SOL has moved; perhaps LINK will do the same. 

Funding is still very positive, along with open interest being very high. This shows a slightly overheated market here, so we should be cautious. 

This is absolutely some cause for concern; hence, we are probably somewhat less aggressive on LINK.

Cryptonary’s take

BTC would have to move meaningfully higher for LINK to continue its rally. LINK looks more overheated than most when comparing it to other ALTS. 

Action

  • Indicators suggest that LINK is heavily overbought.
  • But if LINK pulls a SOL on us, there’s more room to run potentially.
  • For the long-term, LINK is still available at a great price, but wait for deeper pullbacks or higher prices before diving in.

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