Chainlink made a strong surge recently on news of its Coinbase listing as the increase in interest and volumes could mean more gains. The price has broken one key resistance after another and appears to have completed a quick retest.

Applying the Fibonacci extension tool shows that price is now testing the 61.8% level at the swing highs. Sustained bullish momentum could take it up to the next upside target at 78.6% level or $2.5445 or the full extension at $2.7200.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. The gap between the two is widening to show that bullish momentum is gaining traction, and the 100 SMA held as dynamic support.

RSI is heading up to show that bullish momentum is in play, but the oscillator is approaching the overbought zone to signal potential exhaustion. Stochastic is also moving up to show that buyers have control but could also be exhausted soon. In that case, another dip to the nearby area of interest could follow.

The run-up was likely from the news of Coinbase support, which eventually led to the Chainlink listing on the exchange. Prior to this, Chainlink had several positive announcements leading up to the Coinbase support decision, which was likely what drew the exchange’s eye. It has been able to launch its mainnet in May, partnered with Google, is in collaboration with Oracle, and is looking at around 30 recent partnerships.

Chainlink allows smart contracts on Ethereum to securely connect to external data sources, APIs, and payment systems. The Coinbase listing opens it to even more investors, both in the retail and institutional spaces, in its jurisdiction.

Images courtesy of TradingView