【$LINK Signal】1H oversold rebound play, targeting 4H support bounce

$LINK The 1H timeframe is building a short-term base around 8.70, RSI(1H) has reached 38.19 entering oversold territory. Although the 4H timeframe is in a downtrend channel, the current price is close to the recent 4H low support zone, indicating a technical rebound demand. The order book shows a large accumulation of buy orders at 8.70 (130K+), providing short-term support. Open interest remains stable with no signs of panic selling, which could signal weakening downward momentum.

🎯Direction: Long (Long)

🎯Entry/Order: 8.70 - 8.72 (Reason: 1H bottom support + dense buy order zone)

🛑Stop loss: 8.58 (Reason: Break below previous 4H low of 8.595, confirming continuation of decline)

🚀Target 1: 8.90 (Reason: 1H EMA20 resistance + previous small platform high)

🚀Target 2: 9.05 (Reason: Starting point of the previous 4H rebound, key resistance)

🛡️Trade management:

- Position size suggestion: Light (Reason: 4H trend remains bearish, this is a rebound play against the small trend within the larger trend, higher risk)

- Execution strategy: After reaching 8.90 (Target 1), reduce position by 50% to lock in profits, and move the remaining stop loss up to the entry price of 8.72. If the price strongly breaks through 8.90 and stabilizes, hold for the target 2.

Deep logic: Price fell from 9.24 to 8.70, a decline of about 5.8%, short-term selling pressure has been released. The 1H RSI shows early signs of bullish divergence (new lows in price, RSI not making new lows). Funding rate is slightly negative (-0.0044%), favoring long positions. The key is whether the 8.70 support can hold; if it does, a rebound toward 8.90-9.05 is possible. Market logic indicates “price decline,” but stable open interest suggests it’s more likely a liquidation of long leverage rather than a main force distribution.

Trade here 👇 $LINK

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