Chainlink (LINK) started a consolidation phase above $22.00. The price shows bullish signs and might start another rally if it clears $26.80.
Chainlink Price Signals Upside Continuation
In the last technical analysis, we saw more gains in Chainlink above the $20.00 level. The price surged above the $22.00 and $25.00 levels. It even spiked above $27.50 before the bears appeared.
A high was formed at $27.88 and the price is now consolidating gains. There was a minor pullback following Bitcoin, and the price dipped below the $26.00 level. LINK dropped below the 23.6% Fib retracement level of the upward move from the $15.48 swing low to the $27.88 high.
LINK price is now showing many bullish signs above the $22.00 level and the 50-day simple moving average (blue). The current price action is still bullish, but there are chances of a short-term pullback.
Immediate support on the downside is $24.00, and a connecting bullish trend line on the daily chart. If the bulls fail to protect $24.00, there could be a larger downside correction. The next major support is near the $23.00 level, below which Chainlink price might test the 50% Fib retracement level of the upward move from the $15.48 swing low to the $27.88 high at $21.60.
The main breakdown support is forming near the $20.00 level, the 50-day simple moving average (blue), and another bullish trend line on the same chart. A downside break and close below the $20.00 support zone could spark heavy losses. The next key area for the bulls could be near $18.40. Any more losses might call for a dip toward $15.50 in the coming days.
Fresh Surge In LINK?
After the current consolidation or a pullback is complete, LINK could start a fresh increase. Immediate resistance on the upside is at $26.00. The first major resistance is near the $26.80 level.
A close above $26.80 could send Chainlink toward the recent high at $27.88. To continue higher, the price must settle above $28.00. The next resistance is $30.00. If the bulls manage a daily close above $30.00 level, the price could pump over 10% and drift toward the $35.00 level.
Overall, Chainlink’s LINK price is holding gains above the $22.00 and $20.00 support levels. To start a fresh increase, the price must surpass $26.80 and $28.00. If not, the price could dip and test the $20.00 support zone.
