【$LINK Signal】Oversold Rebound Sniping! 1H RSI Extremely Oversold, Waiting for a Reversal Signal

$LINK The 1H timeframe just experienced a waterfall decline, with RSI dropping to 21.09 in the extreme oversold zone, and the price has moved far away from all moving averages. Looking at the 4H timeframe, a large bearish candle broke through the key support at 8.60, but open interest remains stable, indicating that it’s not primarily institutional selling. The current price hovers around 8.23, which is an initial sign of weakening bearish momentum, preparing for a oversold rebound.

🎯Direction: Watch(Pending Orders)

⚡Order Strategy:

1. Aggressive Entry: $8.18 - $8.20 (Reason: Previous support on the 1H timeframe, also the first consolidation platform after a sharp decline )

2. Breakout Confirmation: Hold steady above $8.35 (Reason: Dynamic resistance from the 1H EMA20 and the lower boundary of the previous small consolidation zone )

🛑Stop Loss: $8.08 (Reason: Break below the previous low of 8.165, confirming the continuation of the downtrend )

🚀Target 1: $8.50 (Reason: 1H EMA50 and previous high-volume trading zone )

🚀Target 2: $8.70 (Reason: Starting point of the 4H waterfall decline, a strong resistance zone )

🛡️Trade Management:

- Position Size: Light (Reason: The trend is still bearish, and rebounds are counter-trend plays with higher risk )

- Execution Strategy: If order 1 is filled and the price reaches Target 1, reduce position by 50%, and move the remaining stop loss to the entry price. If order 2 is directly broken through, consider it a stronger signal and hold until Target 2.

Deep Logic: The price dropped 6.85% but open interest remains stable, indicating this is likely a liquidation of long leverage positions causing a squeeze rather than active selling. The 1H RSI is severely oversold, suggesting a technical correction is needed. Market depth shows buy orders accumulating in the 8.21-8.22 range, indicating some funds are attempting to buy the dip. Negative funding rates favor short covering and a short squeeze rebound. The key is whether the price can form a 1H bottoming pattern above 8.20.

View real-time market 👇 $LINK

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