• LINK/USD is currently in a long-term consolidation following an abrupt selloff.
• Both bulls and bears must wait for a breakout before acting, as a bearish flag might form.
• A breakout in either direction should target the measured move of the horizontal channel which is the channel’s width.
The cryptocurrency LINK provides data to smart contracts on the blockchain, and its LINK/USD pairing is currently experiencing a long-term consolidation following an abrupt selloff. As such, both bulls and bears must wait for a breakout before deciding how to act, as there may be potential for a bearish flag pattern formation.
Waiting For Breakout
At this time, buyers have appeared on every attempt to trade below $6, indicating that the market has not made any new lower lows in recent months; however, every bounce was not strong enough to break the previous lower high. This suggests that bears are still in control of market sentiment. In order for there to be any bullish activity within LINK/USD, buyers would need to break above $9.5 and ideally above $10 before taking any action.
Horizontal Channel & Measured Move
As of now, price action seems to be evolving inside a horizontal channel—so until there is some degree of breakout from this trend line (in either direction), it’s likely that market movements will remain stagnant or sideways over time. When such consolidations occur it’s important for traders to look out for trending conditions on the left side of the chart as this could provide insight into potential future price action based on current patterns and trends. Additionally, once there is some sort of breakout from this horizontal channel traders can use its measured move value (which is equal to its width) as their target price point after opening their desired position according to their bias (bullish or bearish).
Keep Your Chart Clean
As with all trading strategies it’s important not get overly distracted by indicators or other tools when analyzing your chart—instead focus on what’s happening traditionally with support and resistance levels while also keeping an eye out for any developing patterns that might indicate a possible reversal or continuation opportunity soon down the line!
In summary, LINK/USD has been consolidating for more than six months since an abrupt selloff occurred earlier last year; however due to bullish activity holding up at $6 traders should pay close attention over the next few weeks if they want capitalize off potential upside opportunities if we see prices eventually breaking above $9.5-$10 soon!