NEW DELHI (CoinChapter.com) — A Chainlink (LINK) rally will happen after the token gains bullish momentum above $17.00. The bulls are in control and seem to be aiming for a move toward $20 or even $22.
Chainlink (LINK) Rally Looks Inevitable
In the past few days, the Chainlink (LINK) rally took its price above the $13.50 zone. In doing so, LINK outperformed Bitcoin and Ethereum steadily above the $15.00 resistance zone. The bulls took control after a close above the $16.20 level and the 50-day simple moving average (blue).
The price cleared a crucial contracting triangle with resistance at $16.00 on the daily chart during the increase. It opened the doors for a surge above the $17.60 resistance. LINK gained over 25% in a few days, and the bulls seem to be in control.
A new multi-week high was formed near $18.86, and the price is now consolidating gains. The current daily candle signals high chances of more upsides above the $18.86 level.
A clear move above the recent high could open the doors for a pump toward the $20.00 resistance zone. The next key resistance is near the $20.40 level. LINK might rally and climb toward the $22.00 barrier if the bulls remain in action. Any more gains might call for a move toward $25.00.
Chainlink is continuously growing and setting new standards. A recent example was Dypius’s integration of Chainlink CCIP to unlock cross-chain NFT transfers for CAWS and World of Dypians Land Collections.
Downside Correction In LINK?
If Chainlink fails near $18.86 or $20.00, there could be a downside correction. Immediate support is near the $17.60 breakout zone. It is close to the 23.6% Fib retracement level of the upward move from the $13.51 swing low to the $18.86 high.
The next major support is at $16.20 or the same triangle trend line. It coincides with the 50% Fib retracement level of the upward move from the $13.51 swing low to the $18.86 high, below which LINK price might slide and test the $15.00 support zone. Any more losses might call for a move toward the $15.00 pivot level or the 50-day simple moving average (blue).
Overall, Chainlink’s LINK price trades in a bullish zone above the $17.60 support and the 50-day simple moving average (blue). It could soon start a fresh surge above the $18.86 and $20.00 levels.
