Market Direction

LINK rockets higher after breaking out

Updated: Jul 25, 2024

Published: Oct 24, 2023

LINK is another asset that’s very overbought. We would exercise real caution here.

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.

TLDR

LINK finally broke above the 9-month range resistance at $8.
Now battling to flip $9.67 to new support for more upside.
RSI overbought on the daily timeframe; the upside looks exhausted.
Long-term targeting $50+ but expect a near-term pullback.

Technical analysis

Another that has had a massive move higher. LINK has broken above its main range resistance in the low $8’s area. This has been a resistance for the last 9 months.

This is another that has gone straight up, and the positive is that we now find the price well above the $8.07 horizontal resistance and above the next resistance at $9.67. Price will need to flip the $9.67 level into new support for the momentum to continue. This means price remains above the $9.67 level for a good number of days and testing this area as support, where buyers then come in at that level.

RSI and funding rates

The daily RSI is at 77, so it is still extremely high. Price has stayed elevated over the last two days but has not continued pushing higher even when BTC did yesterday. This suggests that this is somewhat exhausted to the upside. For now, there aren’t any divergences that need to be considered.

Funding is very positive, indicating longs are paying shorts a premium to be long. Again, this is another coin where traders have positioned much more longs than shorts.

Conclusion on trading LINK

LINK is likely to be a great play for the long run, with price targets in the next bull run north of $50. However, in the coming weeks and months, we believe LINK will pull back from the current price point of $10.32.

Action

LINK will likely perform well in the long run, with bull market targets north of $50.
In the short run, we’d expect a pullback in price. We have identified the yellow boxed area as an area to buy LINK for the long term.