- Chainlink price is grappling with the 50% Fibonacci retracement level at $2.22.
- A decisive close above this barrier is likely to trigger a 30% climb to $31.82.
- If LINK fails to hold above $19.28, it will invalidate the bullish thesis.
Chainlink price is currently retesting the midpoint of the trading range as it tries to recover from the crash witnessed in the third week of September. A successful flip of this barrier will allow LINK to venture higher and recover the losses over the past week.
Chainlink price ponders a journey higher
Chainlink price rose 21% over the past 48 hours and encountered the 50% Fibonacci retracement level at $25.22. Although the buyers are struggling to push through this barrier, the future remains mildly optimistic.
A decisive close above $25.22 will indicate a resurgence of bulls and propel it to the next supply level at $27.39. While this is a temporary blockade, the market makers will likely push LINK to collect liquidity resting above the September 16 highs at $31.82.
However, investors need to note that this uptrend might first encounter a pullback to the 62% Fibonacci retracement level at $22.76.
This ascent to $31.82 would constitute a 40% climb from $22.76.
LINK/USDT 1-day chart
On the other hand, if Chainlink price fails to bounce off the 62% Fibonacci retracement level at $22.76, it will reveal a chink in the bulls’ armor. Such a development will likely push LINK to $21.02, a second chance to restart the uptrend. A breakdown below this level will create a lower low, invalidating the bullish thesis.
This move might trigger a further correction to the range low at $14.97 if the selling pressure persists.
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