Key Takeaways:
Chainlink started a fresh surge above $16.50 and the 50-week simple moving average (blue). LINK price cleared a key contracting triangle with resistance at $12.00 on the weekly chart. The price is up nearly 25% and might rally further by 30% to test the $32.00 resistance zone.Chainlink (LINK) is seeing a fresh rally above the $25.00 zone. A close above $26.50 could signal a strong drift.
Chainlink Price Rallies Over 25%
After forming a base above the $8.40 level, Chainlink started a fresh increase. There was a steady increase above the $10.00 and $12.00 resistance levels. More importantly, it cleared a key contracting triangle with resistance at $12.00 on the weekly chart.
LINK price gained strength above the $16.50 and $18.00 resistance levels. There was a clear move above the last swing high at $22.83 and the price settled well above the 50-week simple moving average (blue).
Chainlink price weekly chart | Source: LINK/USD on TradingView.comThe price is up over 25% in a few sessions, beating Bitcoin and Ethereum. LINK is now approaching a couple of important hurdles, starting with $25.00.
The first major resistance is near the $26.40 level. It is close to the 1.236 Fib extension level of the downward wave from the $22.83 swing high to the $8.05 low. A close above the $26.40 resistance could set the pace for a larger increase.
The next key resistance is near the $30.00 level. If the bulls push the price above $30.00, there could be a drift toward the $32.00 level. It coincides with the 1.618 Fib extension level of the downward wave from the $22.83 swing high to the $8.05 low. Any more gains might call for a move toward $35.00.
Recently, Chainlink shared its major banking and capital markets updates, with participants including American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JP Morgan, MFS Investment Management, Mid Atlantic Trust d/b/a American Trust Custody, State Street, and U.S. Bank.
Pullback In LINK?
If Chainlink fails near $25.00 or $26.40, there could be a downside correction. Immediate support is near the $21.75 level. The next major support is at $20.00 (a multi-touch zone).
The main support is now near the 50-week simple moving average (blue) and $16.00. A weekly close below the $16.00 support could signal a medium-term top. In the stated case, the price might decline toward the $12.00 level.
Overall, Chainlink’s LINK price is signaling a strong bullish momentum above $20.00 and the 50-day simple moving average (blue). A close above $26.40 might trigger a major surge toward $32.00 or even $35.00.
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