LINK Price Analysis: 1.618 Fibonacci Extension Poising Resistance, Consolidation above Weekly S/R Probable

Sunil Sharma Aziz Khan Altcoin News PublishedJanuary 31, 2021 | ModifiedJanuary 31, 2021

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LINK Price Analysis: 1.618 Fibonacci Extension Poising Resistance, Consolidation above Weekly S/R Probable

LINK price is trading at a key trade location where and expansion from this area will dictate the direction of the overall trend. Price Action must find support above the Weekly S/R to confirm consolidation.

  • Strong Bullish Volatility Expansions
  • Weekly S/R Bullish Retest Respected
  • Consolidation above Weekly S/R probable

LINK Price Analysis: Daily Chart

Observing LINK price chart above, a clear Bullish Volatility Expansion is present, breaking above Weekly S/R levels with conviction. The initial Weekly Range was broken bullish with a confirmed S/R Flip retest allowing for a new high to be set. This was indicative of strength as Price Action at the time was very impulsive.

The Volume Profile has a clear climatic node indicating a potential temporary top being set. A Volume Climax is usually a sign of the order books being cleared at the time, Link Price Action as of now is trying to find its equilibrium between Supply and Demand. The Declining Volume is suggestive of this, the more this progresses, the greater to probability of an influx.

The immediate objective is Swing High that is in confluence with the 1.618 Fibonacci Extension Target, Price Action as of current has rejected from this level.

A reversion to the, .382 Fibonacci Retracement, will allow for potential long biased entries. Exceeding Swing High will put LINK price back into price discovery with extended Fibonacci Targets. 

Hope this article helps when making discretionary decisions. 

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Sunil Sharma 156 Articles
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com
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