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Is a breakout on the horizon for LINK?
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.
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.
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
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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