$LINK LINK is currently experiencing an impressive recovery wave from the bottom of 11.82 to the current price level of 15.67. However, a strong resistance zone of 16.4 — 17.6 is waiting above, and it is very likely to be the point where the sharks choose to offload their positions.

The question arises: Is this just a retracement wave before continuing to drop, or is it a sign of a real breakout?

If you pay close attention, buying pressure is gradually weakening as it approaches the upper supply zone, while below, the support zone of 13.7 — 12.6 has yet to be retested after the previous breakdown.

So if you want to participate in a buying strategy, you might wait for the price to adjust to the zone of 13.7 — 12.6, observe the price reaction, and look for the appearance of a reversal pattern or clear buying pressure to enter a trade. A stop-loss could be placed below 12.5, with profit-taking expectations around 15.5 and 16.4 — 17.6 respectively. If the price breaks and closes above 17.6 with strong volume, then you might consider opening an additional breakout position.

Do you think the price will be attracted back to test liquidity at the support zone before continuing?

If you are holding a position, it might be wise to set a clear plan for yourself: where will you take profits, and are you ready to cut losses or stay out?

The market will always ask: “Are you willing to pay the price to learn a lesson, or do you want to earn profits from patience?”

Now it's your turn: How do you choose to act?