Chainlink is back in its trading range following a sharp short squeeze that caught many retail traders off guard. Often, these traders start shorting too late, especially when they expect further declines due to Bitcoin's price swings.
I anticipate the price will likely move sideways for a while, all the while increasing open interest—playing directly into the hands of greedy exchanges and market makers.
If you're actively accumulating LINK but are concerned about potential price drops of 20% to 50% and your prone to capitulating often, consider opening a low-leverage short to hedge your position. This could also allow you to benefit from any available funding. If the price continues to decline, you can close your short position and dollar-cost average your way back in, using the profits to enhance your position.
I anticipate the price will likely move sideways for a while, all the while increasing open interest—playing directly into the hands of greedy exchanges and market makers.
If you're actively accumulating LINK but are concerned about potential price drops of 20% to 50% and your prone to capitulating often, consider opening a low-leverage short to hedge your position. This could also allow you to benefit from any available funding. If the price continues to decline, you can close your short position and dollar-cost average your way back in, using the profits to enhance your position.