LINK: About to reach a year-long resistanceIn this chart, BINANCE:LINKUSDT is inching closer to a critical level wherein the coin is about to touch a year-long resistance line dating back to June 2022. The highlights shown are the instances of the price breakout rejection, making it the strongest resistance for the year.
In my view, a breakout is possible if we see a candle confirmation along with a good buy volume and other indicators continue showing bullishness of the coin.
What should we do then if it breaks out? Identify your nearest support. I would do the process by backtesting as well as plotting retracements, and presented in horizontal lines are the potential resistance lines based on mentioned processes, a given of which is the Fibonacci retracement of .382 level from its all-time high (ATH) to its low level of approximate $7.60.
On the other hand, a rejection could happen based on the RSI being near the overbought territory, an indication of potential selling. For visual reference, check the vertical line on the July 2022 price.
Should you trade this coin now? You could do a scalp if you have the setup, scalp long for me since the trend is still upwards. For intraday traders like me, I would wait until it hits on the resistance line or common support breakdown.
Always have a plan whenever trading by identifying our take profit areas and stop loss. Happy trading!
