- Chainlink price is extremely close to breaking out of a supply zone ranging from $27.01 to $29.79.
- A decisive close above $30 will confirm the start of a 40% ascent to the 70.5% Fibonacci retracement level at $41.35.
- If LINK price fails to hold above $25.40, it will invalidate the bullish thesis.
Chainlink price saw a quick run-up on October 21, hinting at the incoming bull rally. A decisive close above a supply zone will confirm the start of a new run-up.
Chainlink price edges closer to breakout
Chainlink price saw a 17% ascent over the past three days. This ascent is building up steam to break out from a supply zone that extends from $27.01 to $29.79. This barrier prevented LINK from heading higher for roughly a month.
Therefore, a decisive close above $30 will clear this hurdle and indicate that the Chainlink price is ready to move higher. In such a case, LINK will first encounter the 50% Fibonacci retracement level at $33.19. If the buyers manage to push the oracle token past the trading range’s midpoint, it will be the secondary confirmation that an uptrend has begun.
LINK/USDT 1-day chart
On the other hand, if Chainlink price fails to maintain its foothold above the 50% Fibonacci retracement level at $33.19, it will indicate that investors are weary and are booking profits.
If Chainlink price slices through $25.40, it will invalidate the bullish thesis by creating a lower low. In this case, LINK will likely head to the immediate support level at $21.65.
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