Chainlink (LINK/USDT) 3-Day Chart Analysis



1. General Charts and Formations



The chart shows that the long-term downtrend in the Chainlink (LINK/USDT) pair has reached the breaking point and this breakout has occurred. The price is seen to have started an upward movement by breaking a significant resistance area around USD 12. The descending wedge formation has been broken upward and this breakout signals the beginning of a potential uptrend.



2. Support and Resistance Levels



• Main Support Level: The 12-13 USD zone acts as a strong support area. Maintaining this zone is critical for the continuation of the rise.


• Intermediate Support Level: 14.50 USD, intermediate support to watch in the short term.


• Major Resistance Level: Around 18-20 USD, an important resistance area where the price may struggle.


• Long Term Resistance: 30 USD and then 40-45 USD levels.



3. Target and Price Potential



• Target 1: 20 USD, short-medium term target.


• Target 2: 30 USD, the potential to be reached once the formation target is completed.


• Target 3: 40 USD and above, the main target area that can occur in the long term.



4. Trend Direction



• Transition to Uptrend: The price has broken the falling trend line that has been acting as resistance for a long time. This indicates that an uptrend may have started.


• Trend Continuation: If the price continues to stay above the support levels, the rise is likely to strengthen and the target areas are likely to be reached.



5. Indicators



• RSI (Relative Strength Index): If it is approaching the overbought region, there may be short-term corrections. However, overall it may be signaling strong momentum.


• MACD: Being in the positive zone indicates that the rise is supported.


• Volume: Increasing volume during an uptrend confirms the strength of the trend.



6. Formations and Formation Reversals



• Descending Wedge Formation: An upward breakout of this formation means that the price could potentially reach levels of 30 USD and above.


• Trend Reversal Signal: As the price confirms the breakout of the formation, the probability of the uptrend continuing increases.



7. Strategy and Recommendations



1. Buying Strategy: Buying opportunities can be evaluated at 14-15 USD levels. It may be appropriate to add positions at support levels.


2. Profit-taking and Stop-Loss: The first profit-taking level can be considered as 20 USD. The stop-loss level can be positioned below 13 USD.


3. Risk Management: Despite the strength of the formation, it should be noted that the price may pull back to support levels. Therefore, risk management and use of stop-loss are important.



8. Conclusion and Comment



Chainlink (LINK/USDT) appears to have entered a strong uptrend by breaking out of a significant formation. Maintaining support zones is critical to reaching target levels. Investors should carefully monitor price action and volume to determine their strategies. Short-term corrections can be considered as buying opportunities, but risk management should always be considered.