The run-up to $20 looks similar to the previous run-up and subsequent retracement, forming a "W" pattern. Overall I am still bullish as LINK is setting up to be the ETH of this market cycle in terms of both fundamentals and technicals. I see this playing out in two potential scenarios:
1) The "W" fractal repeats, bringing further downside (second green rectangle). This acts as an opportunity for accumulation before the next leg up. The smart contract summit could act as a "sell the news" event. Many are expecting a staking announcement or big partnership announcement, and if either of those two things do not happen we could see another wave of selling. However, there was a strong level of support around $12.75. Previous Fib Retracements show reactions around the .382 and .5, so I will be placing buy orders in this region, especially if the 50 level does not hold on the RSI.
2) RSI is approaching 50. If we get a bounce off this level I would be a buyer, as this level of support would suggest LINK is ready to continue higher. A break below this level would not necessarily confirm scenario 1, due to the potential for a fake-out. We would need a strong buyback if the RSI gets slightly below 50 in order to maintain a bullish outlook.
Keeping a close eye on this one as we are approaching critical levels near the smart contract summit, which could make for large moves in either direction in the short term.
1) The "W" fractal repeats, bringing further downside (second green rectangle). This acts as an opportunity for accumulation before the next leg up. The smart contract summit could act as a "sell the news" event. Many are expecting a staking announcement or big partnership announcement, and if either of those two things do not happen we could see another wave of selling. However, there was a strong level of support around $12.75. Previous Fib Retracements show reactions around the .382 and .5, so I will be placing buy orders in this region, especially if the 50 level does not hold on the RSI.
2) RSI is approaching 50. If we get a bounce off this level I would be a buyer, as this level of support would suggest LINK is ready to continue higher. A break below this level would not necessarily confirm scenario 1, due to the potential for a fake-out. We would need a strong buyback if the RSI gets slightly below 50 in order to maintain a bullish outlook.
Keeping a close eye on this one as we are approaching critical levels near the smart contract summit, which could make for large moves in either direction in the short term.