• The LINK/USD pair has been in a long-term consolidation following an abrupt selloff.
• Bulls and bears must wait for a breakout before acting, as the market is currently forming a bearish flag pattern.
• A breakout could target the measured move of the horizontal channel, which is its width.
LINK/USD: Consolidation After Abrupt Selloff
The LINK/USD pair has been in a long-term consolidation following an abrupt selloff that occurred during the second half of 2022. During this time, buyers appeared every time the price tried to break below $6. Despite these attempts, no new lower lows have been made yet, indicating that bears are still in control of the market.
Bearish Flag Pattern Forming
The 2023 rally brought LINK USD from $6 to $8, but was not strong enough to break the previous lower high. This has resulted in horizontal consolidation on the chart that might be part of a bearish flag pattern. As such, bulls and bears should wait for a breakout before deciding to act on their positions.
Targeting Measured Move
A breakout in either direction could result in a measured move equal to the width of the horizontal channel in which LINK/USD is currently trading within. Should bulls succeed in breaking above $9.5 (ideally above $10), it would suggest that they are carving out a bottom and targeting higher prices accordingly.
Beware False Breakouts
As with any other trade opportunity, traders should be aware of false breakouts when trading LINK/USD within its current range-bound conditions – especially if trading larger positions on margin or using leverage products such as futures or options contracts. In such cases it’s recommended to use stop loss orders or other risk management measures when entering trades based on technical analysis signals like this one.
Final Thoughts
The LINK/USD pair is currently consolidating after an abrupt selloff during late 2022 – with both bulls and bears awaiting an eventual breakout before taking action on their respective positions. Such breakouts can result in measured moves equal to the width of its current horizontal channel and traders should be aware of false breakouts when trading larger positions on margin or leveraging products like futures and options contracts
