Navigating the Ascending Channel and Resistance

Short-term scenario:

In the 4-hour chart, Chainlink is following an ascending channel pattern, which is a bullish sign. LINK's current price is around $8.00, near the upper Bollinger Band and the 0.618 Fibonacci level, which are both significant resistance points. The RSI and Stochastic Oscillator are close to overbought territory, suggesting the possibility of a slight pullback or consolidation.

If the bulls can push LINK above these resistance points and the price sustains there, the upward trend could continue towards the previous peak at $8.464 and beyond. However, if LINK fails to break these resistance levels, we might see a pullback towards the middle Bollinger Band ($7.633) or lower.

Do's in the short-term scenario:

Monitor the $8.00-$8.05 resistance level closely.
Watch the RSI and Stochastic Oscillator for signs of overbuying.
Don'ts in the short-term scenario:

Don't panic sell if a minor pullback occurs. It's normal in an uptrend.
Don't ignore volume changes. They often precede price changes.

Long-term scenario:

In the daily timeframe, LINK is trading above the 0.236 Fibonacci level ($7.59), showing a strong bullish sentiment. However, it's approaching a strong long-term resistance zone ($8.4-$8.95), which it has previously struggled to break.

If LINK manages to break and hold above this resistance zone, the bullish trend might continue with targets at the next Fibonacci level (1.0 at $8.464) and beyond. If not, we might see a consolidation or correction phase, with potential support at the 0.5 Fibonacci level ($6.613).

Do's in the long-term scenario:

Keep a close eye on the $8.4-$8.95 resistance zone.
Stay updated with any fundamental news affecting LINK. These can have a significant impact on the long-term price trend.


Don'ts in the long-term scenario:

Don't ignore the long-term resistance zone. It's a critical level.
Don't overlook market sentiment and broader cryptocurrency market trends.
Most probable scenario:

Given the strength of the long-term resistance zone and current overbought indications on the 4-hour chart, it seems likely that LINK may undergo a minor pullback or consolidation in the short term. The future trend will then depend on whether LINK can break through the $8.4-$8.95 long-term resistance zone.

Do's:

Consider setting stop-loss levels to manage risk effectively.
Regularly review and adjust your investment strategy based on changing market conditions.

Don'ts:

Don't invest more than you can afford to lose. Cryptocurrency investments carry significant risk.
Don't follow investment advice blindly. Always conduct your own analysis and research.