$LINK is at 12.56 now. As of 03:00, this is a good point to talk about moving-average alignment, one of the most basic yet easily overlooked tools.
First, how to read it: on the daily chart, MA7 is at 12.81 and MA25 at 13.54, with the current price below both. But MA99 is at 10.80, and the current price is 16.3% above it. This is a typical “short-term bearish, long-term bullish” structure—the short-term moving averages are acting as resistance, while the long-term moving average is providing support. Many people see the price below MA7 and MA25 and immediately conclude that the trend is weakening. That’s a common misconception: looking only at the short-term moving averages while ignoring the trend context conveyed by longer-term ones. Looking at $LINK ’s 30-day range of 10.62 to 15.78, the current price is at the 38% level, toward the lower end of the range but still above long-term support.
The core idea behind moving averages is “the average cost of the trend.” Looking at several moving averages together helps you assess the balance between bulls and bears across different timeframes, rather than jumping to conclusions whenever the price touches a single moving average. For example, on the 4-hour chart, the current price is 1.0% below the 4h MA20. Combined with a cumulative gain of 1.1% across the six 4-hour candles in the past 24 hours, this suggests that the short-term price is actually seesawing around the moving average, rather than moving down in a one-way trend.
Another common misconception is treating moving averages as precise entry and exit signals. Moving averages are lagging indicators that essentially reflect the average price over a past period. They’re better suited to assessing trend direction and strength than to timing the market precisely. With the daily RSI14 at 45, the market is currently in neutral territory, with no clear overbought or oversold signal. This also confirms the indecisive picture suggested by the moving-average alignment.
Just my personal view, shared for technical analysis discussion only; this is not investment advice.
#LINK #均线分析 #TechnicalIndicators
First, how to read it: on the daily chart, MA7 is at 12.81 and MA25 at 13.54, with the current price below both. But MA99 is at 10.80, and the current price is 16.3% above it. This is a typical “short-term bearish, long-term bullish” structure—the short-term moving averages are acting as resistance, while the long-term moving average is providing support. Many people see the price below MA7 and MA25 and immediately conclude that the trend is weakening. That’s a common misconception: looking only at the short-term moving averages while ignoring the trend context conveyed by longer-term ones. Looking at $LINK ’s 30-day range of 10.62 to 15.78, the current price is at the 38% level, toward the lower end of the range but still above long-term support.
The core idea behind moving averages is “the average cost of the trend.” Looking at several moving averages together helps you assess the balance between bulls and bears across different timeframes, rather than jumping to conclusions whenever the price touches a single moving average. For example, on the 4-hour chart, the current price is 1.0% below the 4h MA20. Combined with a cumulative gain of 1.1% across the six 4-hour candles in the past 24 hours, this suggests that the short-term price is actually seesawing around the moving average, rather than moving down in a one-way trend.
Another common misconception is treating moving averages as precise entry and exit signals. Moving averages are lagging indicators that essentially reflect the average price over a past period. They’re better suited to assessing trend direction and strength than to timing the market precisely. With the daily RSI14 at 45, the market is currently in neutral territory, with no clear overbought or oversold signal. This also confirms the indecisive picture suggested by the moving-average alignment.
Just my personal view, shared for technical analysis discussion only; this is not investment advice.
#LINK #均线分析 #TechnicalIndicators