Chainlink (LINK) started a fresh surge above the $17.50 resistance. The price is gaining pace and might soon clear the $20.00 resistance.
Chainlink Price Gains Bullish Momentum
After forming a base above the $15.50 level, Chainlink started a fresh increase. There was a steady move above the $16.50 and $17.00 levels. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $20.24 swing high to the $15.48 low.
More importantly, the bulls pushed the price above a key contracting triangle with resistance at $18.40 on the daily chart. The last two daily candles were bullish, and LINK outperformed Bitcoin in the last two sessions with a push above the $19.00 resistance.
LINK’s price shows many bullish signs above the $18.80 level and the 50-day simple moving average (blue). The current price action is positive, and the bulls might aim for more gains.
Immediate resistance is near the $19.120 level. It is close to the 76.4% Fib retracement level of the downward move from the $20.24 swing high to the $15.48 low. The first significant resistance is near the $20.00 level.
A close above the $20.00 resistance could send LINK toward the next key barrier at $21.350 and the 1.236 Fib extension level of the downward move from the $20.24 swing high to the $15.48 low. To continue higher, the price must settle above the $21.35 level.
The next resistance is $22.00. If the bulls manage a daily close above the $22.00 level, LINK could rise and drift toward the $25.00 level.
Are Dips Attractive In LINK?
If Chainlink fails near $19.120 or $20.00, there could be a downside correction. Immediate support is near the $18.40 zone. The next significant support is $17.65, below which LINK price might slide and test $16.50 (a multi-touch zone).
A downside break and close below the $1.650 support zone could spark a larger decline. The next significant support could be near the $15.50 level and the 50-day simple moving average (blue). Any more losses might call for a dip toward the $12.00 support zone in the coming days.
Overall, Chainlink’s LINK price is increasing above the $18.00 resistance zone. However, the bulls must overcome $20.00 to push the price further higher in the near term. If not, the cost could dip and test the $17.65 support zone.