The trading month in the LINK market ends quite calmly and without bright moments. After buyers lost the trend line, which firmly kept the price for 2 months, the situation on the market became calm.
From 23 February, the LINK price is trading within the triangle and the trading volumes are falling daily. In the previous article, in early March we forecasted a local price increase to $32-32.6. Our forecast worked but did not clarify the general picture of the market.
Thanks to a strong momentum on 23 February, sellers managed to correct the entire growth wave from December by 50%:
The First Target of Buyers is $38.37
As we can see in the chart, buyers are carefully protecting the liquidity zone of $24.7-26. This range successfully withstood 2 attacks, but to be completely sure in the serious buyers’ intentions it is not enough.
During the try to break this range on 24 March, buyers did not show an active position and a desire to continue the growth trend. Analyzing the volumes, the LINK price lazily bounced from $24.7-26 leaving a false breakdown in the form of a pin-down. Therefore, the re-test of this range on low volumes with a sharp buyers’ counterattack is a sign that will show the LINK growth prospect with the first target of $38.37.
The monthly LINKUSD chart shows that during January-February, buyers failed to fix above the range of $22.5-25:
Buyers’ Aim Liquidity Zone of $22.5-25
If the March candle closes above this range, the worst-case scenario that buyers can expect in April is a re-test of this liquidity zone. The chart also shows that this liquidity zone keeps the LINK price from falling sharply to $17.
However, to make the analysis more objective, it should be noted that now the LINK price is near the global trend line of the growth channel. The two previous times, in June 2019 and in August 2020, the LINK market began a protracted correction by 60%. Now this global trend line is in the range of $45-50.
Given the dynamics of the BTCUSDT price movement on a monthly timeframe, the probability of continued growth to the range of $65,000-75,000 is quite high:
Therefore, the main scenario in the LINK market is the formation of the last growth wave before the global correction of the entire crypto market.