Smart Planning Essential for LINK Investors
While LINK had been trailing its peers in monthly performance, a remarkable 40% surge in the past week has positioned it as a standout in the market.
Despite some weak investors missing out on further gains and causing a temporary pullback near the $24 mark, the overall outlook remains positive.
Currently, there are approximately 17,000 addresses holding around 6.64 million LINK tokens, purchased at a minimum of $24.98, that are now in profit, establishing $24 as a critical resistance zone.
It is crucial to solidify this level as strong support to pave the way for a potential rally towards $30. Failure to do so could lead to panic selling among investors.
The term ‘support’ indicates significant interest from institutional investors and bulls who view this price point as a bottom with potential for substantial future returns.
If this strategy materializes, LINK might reach levels not seen in the past three years, setting the stage for significant FOMO (Fear Of Missing Out).
What are the Chances of this Strategy Succeeding?
From an economic standpoint, every sale represents a corresponding purchase by another party. Despite concerns of an overheated market prompting some investors to sell in anticipation of a market correction, robust demand could easily absorb any selling pressure.
While volume indicators and a positive MACD crossover support this narrative, there is still a need for further confirmation from bullish investors. Notably, more than 165 million LINK tokens have been deposited into exchanges, marking a yearly high.
Reflecting on LINK’s performance from a year ago, the year saw periods of consolidation with a notable uptrend in the final quarter, bringing the price to approximately $16. At present, profit-taking appears to be a prudent strategy.
However, overall market sentiment plays a pivotal role. Unless Bitcoin surpasses $103,000 to achieve a new all-time high, altcoins are likely to see increased liquidity inflow.
The rationale behind this trend is clear: uncertainty surrounding Bitcoin’s next target drives investors to diversify their holdings into large-cap altcoins, providing a hedge against volatility and the perceived risks associated with BTC.
To maintain its positive momentum, LINK bulls must view the current price level as an attractive entry point, instilling confidence and laying the groundwork for a potential surge towards $30, potentially triggering significant FOMO.
On the other hand, breaching the $24 support level could instigate fear among investors, prompting some to exit at neutral levels. In such a scenario, LINK may face a setback while its competitors capitalize on market trends.