This explanation is intended for those who want to trade and know the direction of the currency. It took me some time to study its movement, and this is what I concluded. Follow to the end so that the benefit of the information you have is widespread.
Is it time to buy LINK?
Deep analysis of price and volume movement across different time frames
The cryptocurrency market is full of opportunities and risks, and one of the most important coins that attracts attention is Chainlink (LINK). In this comprehensive analysis, we will take you step by step to understand the price movement of LINK, focusing on different time frames (daily, 4-hour, 1-hour). We will also reveal the most important technical signals and support and resistance levels that determine the upcoming trend. Is it the right time to buy?
Let's explore!
Daily frame (1D): the big picture
#Link
General trend:
Link has been in a clear downtrend since hitting a high of $32. It has gradually declined to the $20 level, which seems to be a strong support.
The highs and lows are decreasing, indicating that sellers are still in control of the market.
Support and resistance levels:
Strong support: at $20, which is an important psychological and technical level.
Nearby resistance: at $22. Breaking this level will signal a trend change.
Volume:
Decreasing volume as support approaches indicates hesitation by buyers and sellers, which may be a signal of an imminent trend reversal.
Increased volume on a bounce from support will confirm the entry of new liquidity, which enhances the possibility of an upside.
What does this mean?
If the price continues to hold above $20 with increasing volume, this could be a golden opportunity to buy for the long term.
Breaking the support at $20 with high volume will mean further decline.
4H Frame: A Closer Look
General trend:
The trend is still down, but there are signs of price stability in a narrow range between $20.12 and $21.35.
The price shows less volatility compared to the daily frame, which indicates a possible entry into an accumulation phase.
Support and resistance levels:
Support at $20 is still holding.
The resistance at $21.35 is a short-term barrier. Breaking it would signal an improvement in momentum.
Volume:
Volume is relatively weak on this frame, reflecting weak buyer momentum.
Increased volume with a break of $21.35 will confirm the entry of bullish momentum.
What does this mean?
If you are a medium-term investor, you can wait for the resistance at $21.35 to break to buy.
Breaking the support at $20 on this frame indicates a continuation of the downtrend.
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1H frame: short-term movement
General trend:
The trend is sideways (oscillating) in a narrow range between $20.50 and $21.
The price is showing recovery attempts, but they are not supported by strong volume.
Volume:
Volumes are increasing slightly on rallies, indicating temporary buying activity.
However, the momentum is still weak to confirm a trend reversal.
What does this mean?
If you are a day trader, you can buy at the bottoms ($20.50) and sell at the tops ($21) to make short-term profits.
Make sure to keep an eye on the volume, as a significant increase will indicate a decisive move ahead.
Conclusion: Is it time to buy LINK?
For the long-term investor:
Wait for a clear reversal confirmation on the daily frame (breaking $22 with strong volume).
If the price settles above the support at $20 with positive signals, this could be a good buying opportunity.
For the medium-term investor:
Watch the 4-hour frame. If the price breaks the resistance at $21.35 with an increase in volume, you can enter.
For daily speculators:
Take advantage of the volatility between $20.50 and $21 to make short-term profits.
Be careful when breaking support or resistance with a change in trading volume.
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What to watch for?
1. $20 level: A major support to watch closely.
2. $22 level: Important resistance, breaking it means the beginning of an upward trend.
3. Trading volume: An increase in volume at support or resistance is a strong indicator of the upcoming price move.
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