In the latest episode of Cheeky Crypto, host Nick delves into the price action and technical analysis of ChainLink (LINK), providing valuable insights for traders and investors.
Price Analysis
ChainLink’s recent price action has been marked by an aggressive upward push, reaching a high of around $12.20. However, the price fell slightly short of the target range, indicating potential resistance at this level. Nick highlights two notable price levels to watch: $12.20 and $12.47.
Technical Analysis
Nick utilizes the 1-hour timeframe chart with ChainLink paired with USDT on Binance to conduct his technical analysis. He identifies the 200 EMA, 50 EMA, and a newly formed 50 SMA indicator as key technical levels.
The stochastic RSI indicator suggests overbought conditions on different timeframes, leading Nick to anticipate an impending price correction. He emphasizes the importance of monitoring these overbought signals to make informed trading decisions.
Market Structure
Examining the market structure, Nick observes a lack of a clear impulsive structure, suggesting that the price action may not be following a predictable pattern. Despite this, he suggests a possible push towards $14.30 before an expected downside correction.
Nick also mentions the potential for a five-wave impulsive structure, which could lead to significant price gains. However, he clarifies that crossing the $420 level would be crucial to confirm this possibility.
Daily Timeframe
Moving to the daily timeframe chart, Nick highlights the significance of the $14.20 level. He discusses the potential for entering a long position if the price confirms a five-wave structure. However, he also emphasizes that failing to reach $14.20 could signal further downside.
Strategy
Nick’s trading approach involves using leverage and setting a stop loss below the bear market low point to mitigate potential losses. He also recommends Bitg as his preferred platform for trading.
Price Projection
Nick shares a bold price projection for ChainLink, suggesting it could potentially reach $300, with a low of $2.17. He emphasizes that if the price doesn’t drop to $2.17, it could potentially surge past $700.
Conclusion
Nick concludes the video by encouraging viewers to share their thoughts and opinions in the comments section. He also requests likes and subscriptions to support his channel.
Key Takeaways
- ChainLink’s price action has exhibited an aggressive upward push but may face resistance at certain levels.
- Technical indicators suggest an impending price correction due to overbought conditions.
- The market structure indicates a lack of a clear impulsive pattern, but a push towards $14.30 is possible.
- The daily timeframe highlights the importance of the $14.20 level for potential long positions.
- A bold price projection suggests ChainLink could reach $300, with a low of $2.17.
