Welcome to another Mubite market update. Today we are looking at the spot buying opportunities for Chainlink (LINK).
The Market Structure
The chart presents a bullish case with a clear Change of Character (CHOCH) and Break of Structure (BOS). This confirms that the long-term momentum is shifting in favor of the bulls. However, identifying the right entry level is key to maximizing risk-to-reward.
The FVG (Fair Value Gap) Analysis
We saw a significant reaction from the Green FVG zone previously, where the price mitigated the imbalance and pumped hard. Those who entered there are already in profit. However, it is important to note that this FVG has now been mitigated multiple times. In technical analysis, a support level that is tested too often tends to weaken. Therefore, we are cautious about relying on this specific zone for fresh entries.
The Buying Strategy: Bullish Order Block
Our primary focus shifts to the Yellow Zone below, which marks a strong Bullish Order Block (OB). Since the FVG is losing strength, smart money orders are likely sitting lower in this unmitigated OB region.
Current Market Price (CMP) vs. Patience
While the current price might look attractive for a quick scalp, we must remain aware of the broader market conditions. If Bitcoin (BTC) drops, it will likely drag altcoins like LINK down with it. Therefore, buying here carries unnecessary risk.
The Plan
We will wait for the price to correct into the Bullish OB region. This lower entry point offers a "discounted" price and aligns with stronger structural support.
Summary
FVG is weak due to multiple tests.
Wait for the dip into the Bullish OB.
Watch BTC price action for confirmation.
Disclaimer: This analysis by Mubite is for educational purposes only and does not constitute financial advice. Always manage your risk.
Do you think LINK will hold the current level or dip to the Order Block first? Share your thoughts below!
