- LINK holds above the $21.60 Fib support, keeping the bullish structure intact.
- Exchange reserves fall sharply, hinting at strong long-term accumulation.
- A retest between $16–$18 could confirm support before a major breakout.
Chainlink is showing signs of a major bullish breakout as a long-term triangle pattern tightens. Despite a recent dip to around $22, market structure and on-chain signals suggest LINK could be gearing up for triple-digit gains.
Big Pattern, Bigger Potential
Chainlink has been building a bullish setup,forming a symmetrical triangle that’s been taking shape since mid-2021. This pattern, with rising support and falling resistance, often leads to explosive moves once price breaks out.
Currently, LINK trades around $22, holding just above the 0.618 Fibonacci retracement level near $21.60 — a zone that has acted as a strong launchpad in the past.
Analyst Ali Martinez on X points to a potential pullback to the $16–$18 range. That dip would serve as a classic retest — confirming old resistance as new support. If that happens, LINK could be gearing up to target $31.87, then $52.30, and potentially $98.15 — the 1.272 Fibonacci extension, often reached in post-breakout runs.
Supply Draining from Exchanges
The technical setup is strong, but on-chain data adds even more fuel. As per CryptoQuant, LINK’s exchange reserves have been steadily dropping — from over 200 million in mid-2022 to just 163.5 million now. That kind of movement usually signals investors pulling tokens off exchanges and into long-term storage.
Source ClairHawk Capital Via X
This kind of behavior cuts down sales pressure. In fact, previous price rallies — in early 2024 and again in mid-2025 — both followed big reserve drops. And with the latest surge to $22 happening right after another decline in reserves, the trend looks far from over.
What’s clear is that 2025 has brought a real shift. LINK isn’t just being traded anymore — it’s being held. That kind of structural change suggests investors are in it for the long haul.
Short-Term Dip Could Be the Launchpad
Despite the strong setup, Chainlink’s market cap has pulled back — from over $16.2 billion to below $15 billion between August 31 and September 6. Sharp drops on September 1, 4, and 5 suggest some traders are cashing out, adding volatility.
Still, each dip sparked a small rebound. It’s a sign that bulls are still present, even if momentum has cooled. Combine that with the falling reserves and long-term triangle pattern, and this pullback may end up being the last shakeout before a real breakout.
