Investors Advised to Strategize Wisely with LINK
While LINK fell behind its counterparts in monthly performance, a remarkable 40% surge over the past week has positioned it as a standout in the market.
Despite the pullback near $24 due to profit-taking by some investors, the road ahead remains promising. Approximately 17,000 addresses with 6.64 million LINK tokens bought at a minimum of $24.98 are currently in profit, making $24 a critical resistance level.
Establishing solid support at this level will be essential for LINK to break through to $30. Failure to hold above this point could trigger panic selling among investors.
As the term suggests, ‘support’ reflects substantial buying interest from institutional players and bulls, indicating confidence in the price floor and expectations of significant gains in the future.
If this strategy materializes, LINK could revisit a level untouched in the past three years, potentially sparking a wave of Fear of Missing Out (FOMO) in the market.
What Are the Chances of This Strategy Coming to Fruition?
From an economic standpoint, every sell order is matched by a buy order from another market participant. Despite concerns about an overheated market prompting some weak investors to exit for a possible correction, strong demand may easily absorb the selling pressure.
While volume indicators and a bullish MACD crossover support this narrative, bullish confirmation is still pending. Notably, the inflow of over 165 million LINK tokens into exchanges has reached a yearly peak.
Reflecting on LINK’s performance a year ago, the market witnessed consolidation for most of the year, with a significant bull rally in the final quarter, pushing the price to around $16. Taking profits seems to be a logical move at this stage.
Nevertheless, general market sentiment remains a critical determinant. Unless Bitcoin surpasses $103,000 to mark a new all-time high, altcoins are expected to draw substantial liquidity.
This behavior stems from the uncertainty surrounding Bitcoin’s next psychological milestone, prompting investors to diversify their holdings towards high-cap altcoins, viewed as a safer hedge against Bitcoin’s volatility and current high-risk entry points.
To maintain its upward trajectory, bulls backing LINK must view the current price level as a prime opportunity to buy, instilling confidence and paving the way for a potential surge to $30—a point where significant FOMO could kick in.
Conversely, a breach of the $24 support level might trigger panic selling, leading some investors to exit at break-even, potentially exposing LINK to a downward trend while its competitors capitalize on prevailing market dynamics.