- Chainlink has broken a long-term resistance trendline, signaling a bullish macro breakout.
- Over 5.3M LINK tokens were withdrawn from exchanges, indicating whale accumulation.
- Fibonacci extensions project potential LINK targets at $31.57, $53.07, and over $100 .
Chainlink (LINK) has shattered a 3-year resistance zone, igniting fresh bullish momentum. Whales are rapidly accumulating and supply is shrinking,traders now eye explosive upside potential as technicals and on-chain data flash green signals.
Long-Term Technical Structure Points to Bullish Macro Move
On-chain analyst Ali Martinez observed that Chainlink has just broken out of a long-term symmetrical triangle pattern.This pattern has held since 2021, compressing LINK’s price within converging trendlines.LINK recently broke out above the upper trendline and turned it into support marking a potential shift to a bullish phase.
As of this writing,LINK is trading at $24.60 after a slight over 3% decline over the past 24 hours, though the price is still up over 10% over the past 7 days .The coin is holding above the 0.618 Fibonacci retracement level at approximately $21.00. This level, derived from the swing high to swing low, is often considered a crucial pivot point in market cycles.
A rally could be in play,potentially aligning with broader crypto market recoveries and cycle rotations.LINKs breakout however hinges on holding above $21, a drop below this level could send LINK to $16 and would invalidate the current bullish setup.
Exchange Outflows Signal Whale Accumulation
Santiment data shows a sharp decline in LINK supply on centralized exchanges.Over 5.34 million LINK tokens were withdrawn on September 12.This move coincided with a price surge from around $23.70 to above $25.30, suggesting that large holders and institutions are moving tokens off exchanges ,often a sign of long-term accumulation and reduced selling pressure.
This points to continued confidence among investors. With decreasing supply and rising demand, the setup suggests a possible supply squeeze scenario if buying momentum continues.
Growing Momentum and Positive Market Structure
The current price structure shows higher highs and higher lows,usually a bullish trend.This structure, combined with the breakout from a multi-year consolidation and a falling supply on exchanges, lays the groundwork for upward movement.
Additionally, Chainlink’s fundamentals remain strong. According to DeFiLlama, its oracle network now secures over $100 billion in total value, with Aave contributing more than $70.9 billion which is 70.75% of LINK’s total value secured (TVS).
If LINK turns the $25–$26 zone into solid support and pushes past the $29–$30 resistance, technicals point to a sustained rally that could see the asset challenge the $50 level and beyond.
