Chainlink (LINK) remains to be one of the best performing cryptocurrencies in the by twelve months. As of Jan. 23, LINK is at present bigger than Litecoin (LTC) and now number seven at $9.ii billion marketplace capitalization, after surpassing Bitcoin Cash before this week.

The LINK price surge too coincided with rumors this week that Grayscale is preparing to add a Chainlink Trust product. This news outcome likely played a office in the toll of Chainlink rallying toward new all-time highs, making LINK, once again, i of the best performing cryptocurrencies.

What is the primal back up level?

LINK/USDT one-day chart. Source: TradingView

The daily chart for Chainlink shows massive volatility in recent months, merely besides some beautiful price activity.

Every previous level of resistance flipped for back up, after which the price connected climbing almost in textbook style. That's the beautiful nature of price activeness and trading in full general.

Most people take the impulse to enter a position when the toll is soaring. Only those back up/resistance flips actually requite the best entries. Specifically, the first support/resistance flip occurred at the $10 level, after which the same happened with the $thirteen and $17.xxx areas.

Therefore, the crucial level to watch for potentially more downside is the $17.xxx expanse, every bit well as the $19.fifty zone. This latter area is the previous all-time loftier in 2020 and possibly the point of the next back up/resistance flip, which would be bullish for more than upside.

Possible Chainlink toll tops to watch

LINK/USD 1-day chart. Source: TradingView

As Chainlink is in cost discovery, information technology becomes difficult to define the potential top structures' next points of interest. The Fibonacci extension tool, nevertheless, is quite useful for traders to determine these areas.

Using this indicator, the starting time zone is between $29-31, which aligns with both of the Fibonacci extensions. The second zone is at the 2.618 Fibonacci extension of $39 and the last one is found at the $42 area.

However, the next impulse wave will likely see a big surge in the Bitcoin (BTC) pair of LINK. The recent run was spearheaded past Bitcoin, while the altcoin-BTC pairs were relatively flat.

Once Bitcoin finishes its correction and starts to move upward in a ho-hum way, the likelihood of altcoins outperforming Bitcoin increases.

LINK/BTC meets large resistance zone

LINK/BTC 1-day chart. Source: TradingView

The altcoin-BTC pairs have been waking upwards from their deep sleep in the past weeks, but information technology tin't actually exist called an "altseason" just yet. Altcoins must still consolidate and build upwards forcefulness for the next leg up.

For Chainlink, such an accumulation is shown on the left side of the nautical chart. Chainlink'south toll has been acting in an accumulation range for some time before the latest surge started to happen.

For such a big surge to occur, Bitcoin's price must remain steady. Otherwise, the volatility in BTC volition have an even bigger touch on on the less-liquid altcoins.

LINK/BTC now faces crucial resistance. If this level at 0.00074000 sats can't break to the upside, renewed tests at the 0.00055000 and 0.00041000 sats levels are possible.

However, if Chainlink breaks through 0.00074000 sats, continuation is likely toward the next meaning zone at 0.00110000 sats. In the USD pair, such a surge would put Chainlink shut to the adjacent Fibonacci zone at $39.

The views and opinions expressed hither are solely those of the author and exercise not necessarily reverberate the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.