LINK/USD presents a potential long opportunity as the price targets the key resistance level of $26.14. The trading strategy suggests buying LINK/USD at an entry price of $18.64, with a stop loss at $16.88. Three take profit levels are set at $20.50, $23.50, and the ultimate target of $26.14. The timeframe for this trade is estimated to be 1-2 weeks, with a potential maximum profit of 40% and maximum loss of 9%.
On the chart, Chainlink has been on a bullish trend, registering a 64% gain in the past month. The price has been forming new higher highs and is expected to reach the resistance level in the coming days and weeks. However, a retracement is anticipated before the price continues its ascent. The support level at $18.60 is crucial, given its association with the 0.786 Fibonacci level and a bullish order block from where the recent high was established.
From a fundamental perspective, there are no notable events that might significantly impact Chainlink’s price. Nevertheless, the positive sentiment surrounding Bitcoin’s ETF inflows is expected to have a favorable effect on the overall cryptocurrency market and altcoins, including Chainlink.
In summary, the trade idea suggests a long position on LINK/USD, with the expectation of reaching the $26.14 resistance level. Multiple take-profit levels are included to secure profits along the way, while the risk-to-reward ratio for this trade is 1:4.2. The entry and stop loss prices are strategically placed to minimize the likelihood of being hit. Good luck!