- Chainlink price has broken the market structure by creating a higher high above a critical resistance level.
- A minor pullback could provide bulls the extra oomph to propel LINK to retest its all-time highs at $44.37.
- The bullish thesis will break down if the 50 SMA at $34.95 is shattered.
Chainlink price shows a shift in the nature of market participants as it creates a swing high. This move could trigger other investors to step in, pushing LINK to retest its local top.
Chainlink price puts the worst behind it
On the 4-hour chart, Chainlink price has been on creating lower lows since hitting an all-time high of $44.37 on April 15. LINK formed the third consecutive swing high at the time of writing as it broke above the 50% Fibonacci retracement level at $37.28.
This steady shift above suggests a possibility that Chainlink price might sweep the swing high at $41.96. If the bullish momentum persists above this level, LINK could easily hit the subsequent level at $43.43.
Unless investors begin to book profits here, Chainlink price could surge an additional 2% to retest its all-time high at $44.37.
While the above is a straightforward scenario, the chances of it occuring are less likely. The pragmatic outcome would be for LINK to retest $37.28, which will allow the buyers to recuperate and propel Chainlink price by 15%.
LINK/USDT 4-hour chart
If the sellers overwhelm the bullish momentum around the 50% Fibonacci retracement level at $37.28, leading to a breakdown, Chainlink price could slide 7% to the immediate support barrier at $34.95.
This pullback still doesn’t dent the bullish thesis, but if the demand level at $37.28 gives in, then the optimistic scenario will face invalidation. Such a move could cause LINK to retest the 200 4-hour SMA at $34.2 or the local bottom at $32.61.
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