What’s up, fellow chart junkies. Back again to talk about the market, which has been acting pretty wild lately. In this edition, I want to share my perspective using the Smart Money Concepts (SMC) lens on two assets that everyone’s buzzing about NVDA in the stock market and LINK in the crypto space.
We’re going to see how strong narratives often clash with the cold, hard facts of market liquidity.
NVDA: The AI King and Its Chart
Who doesn’t know NVIDIA (NVDA)? The AI narrative is absolutely insane right now, and it feels like everyone wants a piece of this stock. The fundamentals? They’re rock solid. Let’s look at the data first to keep things objective.
From the data above (this is the latest data as of the 20th), you can clearly see that NVDA’s revenue in the Data Center and Edge Computing sectors is just exploding. The Y/Y (Year Over Year) growth is off the charts literally up by hundreds or thousands of percent in some quarters. The fundamental narrative is definitely valid NVDA is the backbone of the AI revolution.
But remember, we’re traders, not corporate cheerleaders. In SMC, a great narrative is often used by the big boys (institutions) to bait retail liquidity before they dump it. Now, let’s take a look at the technical chart.
Look at the chart above. I’ve marked my New Target's in the 300.00-278.00 range. The trend is still strongly bullish, but look at the RSI it's pretty overbought.
Important Disclaimer: The Target's area on the chart is my own personal target. I’m just sharing my view. So, if you decide to follow along and end up with a loss or a profit, that’s not on me. Do Your Own Research.
LINK: The RWA That Needs Some Juice
Moving over to crypto, let’s look at Chainlink (LINK). The narrative around Real World Assets (RWA) and blockchain interoperability is super strong for the long term. But what about the liquidity right now?
From the derivatives data above, you can see that the Long/Short Ratio is still leaning bullish from the retail side. But look at the Volume and Open Interest (OI). The price of LINK is mostly sideways or grinding lower, and the volume and OI are actually drying up.
In plain. The market is lacking interest right now. There’s no new money coming in to push the price up. From an SMC perspective, I wouldn’t enter a trade here because the price is just stuck in the middle.
Look at the technical chart above the price is still struggling below the SMA 200. I’m waiting for the price to drop into the Demand zone (at the bottom) to sweep some liquidity before I look for a Buy position. Entering now? No way, guys. Waiting for liquidity confirmation is a lot safer.
Conclusion
So, that’s the breakdown. For NVDA, the narrative is pushing toward the 300 range. For LINK, the narrative is strong, but the market is starved for liquidity. Don’t get caught up in the FOMO from the headlines; news is often late. Follow where the Smart Money is putting their capital that’s the key.
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Source
Seekongalpha