The Chainlink ($LINK) currency has seen strong movements in recent weeks, and it is now at a critical crossroads. $LINK faces stubborn resistance at a psychologically and technically significant level.
📈 Current wave analysis for $LINK
The currency is currently trading around the $17.50 level (as of the date of this post), after a strong upward wave. However, the movement faces a solid ceiling that requires significant liquidity to break through:
Technical level Estimated value (as an example) Importance
Critical resistance level $18.50 - $19.00 This is the ceiling that prevented $LINK from taking off previously. Breaking and holding above this level means a direct target towards $20.
The next target after the breakout $21.50 - $22.00 This is the next target set by the Fibonacci Retracement after surpassing the main resistance.
Critical support area $15.80 - $16.00 This is the floor that the price must not break to maintain upward momentum. Breaking this level may indicate a deeper correction.
💡 What does this mean for traders?
The positive scenario (uptrend): If $LINK can gather enough liquidity and consistently surpass the $19.00 level (with a strong daily candle), the path becomes clear to target $22.00.
The scenario
The negative scenario (correction): If it fails to break through the resistance, the price may bounce back to the critical support area at $16.00 to test it again, representing a new buying opportunity for those following a DCA strategy.
Warning to traders: 🛑 Do not open your positions before confirming the breakout. Use a Stop-Loss to protect your capital, especially with the Federal meeting approaching.
Share your opinion: Are you optimistic about $LINK reaching the $22 target before the end of the year?
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