Fibonacci Levels Define Chainlink’s Path to $50 Amid Renewed Momentum

• Chainlink’s bullish flag breakout hints at a potential rally, targeting $50 as momentum builds. Key Fibonacci levels guide traders.
• Resistance at $24.916 and support at $20.447 define critical zones. Breakout volume suggests strong bullish participation.
• RSI at 57.62 confirms moderate momentum. Bollinger Bands show price nearing resistance at $25.18 amid growing market activity.

Chainlink (LINK) recently broke out of a bullish flag, signaling a potential rally toward $50. The 4-hour trading chart reveals LINK’s price at $22.906, reflecting a 1.97% daily gain. A Fibonacci retracement tool outlines critical resistance and support levels. The LINK has a strong upward trend starting near $10, followed by a corrective phase. The breakout marks renewed bullish sentiment, with key Fibonacci levels shaping market dynamics.

Fibonacci Levels Define Critical Zones

Strong support is provided by the 0.382 level at $20.447, while the 0.5 Fibonacci level at $23.440 acts as immediate resistance. Future targets that could be projected by higher Fibonacci extensions are 1.272 ($34.949), 1.618 ($41.801), and 2.0 ($50.936).. Additionally, the ultimate extension at 2.272 ($58.634) marks a long-term target if bullish momentum persists.

Resistance at $24.916, corresponding to the 0.618 Fibonacci level, remains pivotal for confirming sustained price strength. Besides, horizontal resistance near $30 aligns with the 1.0 Fibonacci level, forming a hurdle. The breakout occurred as the price breached the descending channel’s trendline, which had previously suppressed upward movement.

Bollinger Bands and RSI Support Bullish Outlook

The daily price of LINK also reflects strong technical signals. Bollinger Bands show the price trading between the middle and upper bands, indicating bullish momentum. The 20-day simple moving average (SMA) at $21.73 provides dynamic support, while the upper band at $25.18 forms resistance.

The Relative Strength Index (RSI) stands at 57.62, suggesting moderate momentum. Moreover, the RSI crossed its signal line, confirming price strength. Volume surged to 5.32 million, highlighting increased trader participation amid the breakout.

Outlook and Risks

Chainlink’s breakout signals a potential rally toward higher Fibonacci extensions, particularly $50 and beyond. However, risks remain if the price fails to hold above $23-$24. A dip toward $20 could signal weakening momentum. The 0.618 Fibonacci level at $24.916 remains critical for confirming bullish strength.