Phemex Analysis #52: How to Trade LINK like a Pro

In the world of cryptocurrencies, every token has a story, and Chainlink ( LINKUSDT.P ) is no exception. Since its launch in 2017, LINK has established itself as a leader in decentralized oracles, bridging the gap between blockchain technology and real-world data. But what truly captivates traders is LINK’s price journey—a rollercoaster ride filled with opportunities and challenges.

If you’ve been following our analysis, you might recall our deep dive into Cardano (ADA) last week. ADA had its own impressive run during the November 2024 bull market, but this week, we shift our focus to LINK. Like ADA, LINK also experienced a massive surge during the bull run, climbing from $10.245 on November 5th to an impressive $30.954 by December 13th—a staggering 302% rally that left investors euphoric. However, the tide turned, and LINK tumbled to $17.804, a 42% drop from its peak.

Now, with the price hovering in this range, the question on everyone’s mind is: What’s next for LINK? Is it time to buy the dip, or should traders prepare for more turbulence? Let’s explore three possible scenarios for LINK’s price movement and uncover some Pro Tips along the way.


Scenario 1: Continued Bearish Momentum
Picture this: The crypto market remains under pressure, weighed down by bearish sentiment. LINK struggles to reclaim higher levels and forms a lower high—failing to break above $24.79 in the coming days. Then, the unthinkable happens: LINK breaks below its crucial $17.5 support level with heavy selling volume. The price plunges further, testing key support zones at $16.1, $13, or even as low as $10.2.

For traders, this scenario might feel like walking through a storm, but opportunities often hide in chaos.

Pro Tips:
•If you’re daring and willing to take on higher risk, consider entering at $16.1 for potential upside—but be prepared for more downside.
•For those seeking balance between risk and reward, $13 might be your sweet spot.
•If you’re cautious and prefer minimizing risk, wait for $10.2—a level that offers a safer entry point but comes with the risk of missing out if the dip doesn’t go that deep.
•Want to play it smart? Use scaled orders to spread your entries between $16 and $13 (medium-high risk) or $13 and $10.2 (medium-low risk).


Scenario 2: A Period of Calm—Consolidation
After months of wild swings—first the November bull run and then January’s sharp drop—LINK might finally catch its breath. Imagine the price settling into a quiet rhythm, moving sideways with little fanfare. In this scenario, LINK forms a lower high (below $24.79) but drifts slowly toward the $17.5 support level with low trading volume.

For seasoned traders, this could be an opportunity to profit from the calm before the storm.

Pro Tips:
•Deploy grid trading bots to capitalize on small price fluctuations during this consolidation phase.
•If you expect prices to rebound from support levels, start long grid bots near $17.5.
•If you believe prices will struggle near resistance levels, start short grid bots near $24.79.

This period of consolidation may not be thrilling, but it offers a chance for traders to sharpen their skills and prepare for what’s next.


Scenario 3: The Bullish Breakout
Now imagine a scenario where LINK starts showing signs of life—a bullish breakout that reignites hope among traders. If this breakout happens in the next few days, it’s likely to be a quick pump-and-dump rally—a short-lived rise that fizzles out almost as quickly as it began. However, if the breakout occurs after a period of consolidation, it could signal something more meaningful: a sustained upward trend.

The key lies in timing and volume. A breakout above $24.79 with high trading volume would be the first signal that LINK is ready to climb higher. From there, traders can look toward resistance levels at $26 and $30.4 as potential profit-taking zones.

Pro Tips:
•If the breakout occurs after consolidation, it’s more likely to be sustained—watch for high volume as confirmation.
•Consider going long once LINK breaks above $24.79 and aim for profit targets around $26 and $30.4.
•Stay cautious if the breakout happens too quickly without consolidation—it could be a short-term pump with limited follow-through.

This scenario is all about patience and precision. Waiting for consolidation before entering can help traders avoid false breakouts and position themselves for a potentially rewarding move upward.


Conclusion
Trading LINK isn’t just about numbers; it’s about understanding its narrative within the broader market context—and learning from similar tokens like ADA can provide valuable insight into how markets behave under similar conditions.

Whether it’s navigating bearish waters like Scenario 1, profiting during periods of calm consolidation like Scenario 2, or riding bullish waves like Scenario 3—each scenario offers unique opportunities for those who are prepared.

As you chart your course with LINK (and keep an eye on ADA), remember that every trade tells a story—and yours can be one of success if you stay disciplined, manage your risks wisely, and adapt to changing market conditions. So gear up and trade LINK like a pro—because every great trader knows that fortune favors the bold but rewards the prepared!


Final Tips:
Take your trading to the next level with Coin-M perpetual contracts, where you can use your ADA or LINK as collateral to trade and accumulate more tokens along the way. Phemex will list Coin-M perpetual contracts for ADA, LINK, AVAX, and SUI on January 16th. Don’t miss it—check it out!


Disclaimer: This is NOT financial or investment advice. Please conduct your own research (DYOR). Phemex is not responsible, directly or indirectly, for any damage or loss incurred or claimed to be caused by or in association with the use of or reliance on any content, goods, or services mentioned in this article.