Blow Off Top Or Not
I am sure that for many watching the recent LINK rally, it may have appeared as though this project was just going to continue going up. From new all time high to new all time high, LINK seemed unstoppable. However, everything that goes up must indeed come down and a blow off top was the most likely outcome. To be honest, I would not really call it a blow off top but more of a severe correction.
The LINK marines did a good job pumping Chainlink well over their target of $14 to an unbelievable $20! I stopped trading LINK at around $10, which some may think was premature but I like to take the meat and move on. I like trading in the heart of the price action as apposed to the fringes, as anything can happen there.
Now that we have seen a healthy correction back down to $14, I am watching to find a new entry to start trading LINK again. Looking at the daily chart below, LINK is about to test the downward sloping resistance and I am looking for a sustainable break and move above it.
I will not be opening any new positions without seeing this confirmed. The likeliness that BTC will still drop a few hundred dollars is also still on the table. It seems like LINK is on the move though because in the few minutes it took to insert the above screenshot, LINK has broken out above the downward sloping resistance! Time will tell if it is a legit breakout or just a fakeout.
I will be waiting for at least a 4 hour candle close above the trend line and then enter a long position. Please remember that this is not financial advice. Ensure that you do your own research before entering any trades or positions.
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