Chainlink (LINK) started a fresh rally above the $22.50 resistance. The price is now consolidating gains and dips could be attractive in the near term.
Chainlink Price Rallies Over 15%
In the last technical analysis, we discussed the chances of more gains in Chainlink above the $18.50 level. The price remained supported and extended gains above $20.00. The bulls pumped the price above the $22.00 and $25.00 levels.
LINK outperformed Bitcoin, gained over 15% in a couple of days, and even spiked above $26.00. A new multi-month high was formed at $26.34 and the price is now consolidating gains.
LINK price is now showing many bullish signs above the $24.00 level and the 50-day simple moving average (blue). The current price action is positive, but there are chances of a short-term pullback.
Immediate support on the downside is near $23.80 and the 23.6% Fib retracement level of the upward move from the $15.48 swing low to the $26.34 high. If the bulls fail to protect $23.80, there could be a larger downside correction.
The next major support is near the 50% Fib retracement level of the upward move from the $15.48 swing low to the $26.34 high at $20.90, below which LINK price might slide and test $19.50 (a multi-touch zone).
There is also a connecting bullish trend line forming with support near $19.50 on the daily chart. A downside break and close below the $19.50 support zone could spark heavy losses. The next key area for the bulls could be near $18.00 and the 50-day simple moving average (blue). Any more losses might call for a dip toward $16.50 in the coming days.
Fresh Increase In LINK?
After a short-term consolidation or a pullback, LINK could start a fresh increase. Immediate resistance on the upside could be $26.00. The first major resistance is near the $26.40 level.
A close above $26.40 could send Chainlink toward the next key barrier at $27.50. To continue higher, the price must settle above $27.50. The next resistance is $28.80. If the bulls manage a daily close above $28.80 level, the price could rise and drift toward the $30.00 level.
Overall, Chainlink’s LINK price is gaining pace above the $24.00 resistance zone. However, the bulls need to overcome $26.40 to push the price further higher in the near term. If not, the price could dip and test the $19.50 support zone.
