$LINK Just Triggered a Short Liquidation Worth $2.33K at $13.93 – Bulls Are Awakening
The battle is heating up for $LINK as short sellers just got squeezed near the critical $13.93 level, triggering a short liquidation worth $2.33K. This may just be the spark that lights the next leg up.
After weeks of consolidation, this liquidation event could mark a shift in momentum. Here’s the breakdown of the potential setup:
Buy Zone:
$13.60 to $13.90 – This zone is acting as a launchpad, where demand is building up. Dips into this area are likely to be bought aggressively, especially after the recent liquidation wick.
Target Levels:
First Target: $14.70 – Previous resistance zone, ideal for partial profit-taking.
Second Target: $15.45 – Strong psychological level and historical supply zone.
Extended Target: $16.20 – If bullish momentum sustains, this level could be tested, especially if volume continues to rise.
Stop-Loss:
Below $13.30 – A clean invalidation zone, as falling below this level would suggest that bears are regaining control and the breakout attempt has failed.
Technical Context:
The recent liquidation is a key signal that weak shorts are being flushed out. This often precedes a strong move up as smart money steps in. The RSI is resetting from overbought levels, and volume has started to tick up – all early signs of a potential breakout.
Strategy Outlook:
Accumulating in the buy zone with a tight stop can offer a high reward-to-risk setup. Keep an eye on the $14.70 breakout. A close above it could bring explosive follow-through.
