- LINK retraced to $21–$20, aligning with Fibonacci support levels and moving averages, offering bulls a potential re-entry before continuation.
- A bullish ascending triangle from 2019 shows LINK building momentum, with a projected breakout target exceeding $140 based on historical moves.
- Chainlink Reserve added over 43,000 LINK, reinforcing accumulation amid current market conditions.
Chainlink (LINK) is trading at $22.74 as at press time , down about 2.9%. Investors are keeping a close eye on the $20 support level, hoping it triggers a solid bounce and opens the door for a breakout toward $33 or beyond if buying momentum picks up.
Key Technical Levels Provide Support Near $20
CryptoPulse observed that “$LINK is easing down toward our $20 buy zone,” identifying it as a potential entry point. According to the daily chart, the price surged from $15 to nearly $28 in early August, followed by a pullback. The current zone between $21.12 and $19.80 aligns with 50% and 61.8% Fibonacci retracement levels, which historically serve as technical support during market corrections.
The moving averages near this zone suggest dynamic support, with past rallies showing rebounds from these bands. Recent candles reflect market indecision at the $23 level, indicating a possible consolidation phase. A break below the $19.80 level could open the way to deeper corrections, while a bounce could resume the prior uptrend.
Long-Term Chart Indicates a Bullish Pattern
On a broader timeframe, Chainlink shows a developing ascending triangle pattern, formed over several years. The rising trendline and repeated tests of resistance near $40 suggest long-term accumulation. The pattern remains intact, and a breakout could result in a strong move above the $40 level.
Source Lost in CryptoLand Via X
Based on historical performance, if the projected breakout occurs it could lead to a move as high as $148.A similar breakout in 2020 led to a 262% gain.
Indicators Reflect Consolidation And Mixed Momentum
On the 4-hour chart, LINK trades around $22.75, pulling back from recent highs near $27. A descending triangle pattern suggests the possibility of a continuation.The MACD shows a bearish crossover but is still hovering near neutral levels. Meanwhile, the RSI sits at 44, indicating some bearish momentum in the market.
Trading volume fell during the recent dip, indicating selling pressure wasn’t very strong. Support around $21 and $20 is holding firm for now. If those levels give way, the price might drop toward $18 or $16.
On September 5th, the Chainlink Reserve added 43,937.57 LINK tokens, increasing its total holdings to 237,014.07 LINK valued at around $5.34 million. This steady buildup of tokens helps support the network’s long-term growth, fueled by earnings from both off-chain and on-chain sources.
