Chainlink price gears up for 40% gains as LINK bulls break out of a vital barrier
- 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.
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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.
In this case, the bulls will propel Chainlink price to $41.35 or the 70.5% Fibonacci retracement level. This ascent would represent a 40% advance from the current position.
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.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
