What to Know

  • Chainlink traded near $13.56 on Sept. 25 after recovering from the roughly $8 area seen in early August.
  • The $7.01-$9.48 region remains a key accumulation zone after previously preceding a roughly 550% rally in the prior cycle.
  • LINK has moved above its 20-week EMA near $10.46, 50-week EMA near $11.27, 100-week EMA near $12.55, and 200-week EMA around $12.65.
  • The weekly RSI has climbed toward 63, signaling improving momentum while staying below the overbought threshold above 70.
  • A four-hour cup-and-handle breakout above the neckline near $13.32 has placed a measured target near $16.83 in focus.
  • The shorter-term setup would weaken if LINK loses the $13.32 breakout level, potentially reopening the $12.50-$12.65 area.
  • If LINK reaches the $16.80 region, the broader $18-$18.60 resistance band could become the next major test for bulls.

Chainlink is beginning to validate a bullish accumulation structure that technical traders have monitored since early August, with LINK’s latest advance pushing the token back into a more constructive position on both weekly and four-hour charts. The move has brought the $18-$18.60 resistance zone back into view, although the first major upside objective now sits closer to $16.80 following a shorter-term breakout pattern.

LINK traded near $13.56 on Sept. 25, extending a recovery that began after price action spent time around the roughly $8 area in early August. That rebound matters because the $7.01-$9.48 region has been viewed by some chart watchers as a major accumulation zone. The same broad area preceded LINK’s roughly 550% rally during the previous cycle, making the current recovery especially notable for traders who focus on historical support and market structure.

At the time LINK was trading near $8.15, the bullish path required a sequence of technical confirmations rather than a single oversold bounce. First, buyers needed to reclaim $9.48. Then, LINK had to break through a dense cluster of long-term exponential moving averages before making a serious attempt at the broader $15-$18.60 resistance area. That sequence is now developing, giving the recovery more credibility than it had when the token was still trapped near the lower end of its accumulation range.

Weekly EMA Cluster Strengthens the Bullish Case

On the weekly chart, LINK has climbed above a major group of exponential moving averages that had been acting as an important test for trend direction. The token is now above its 20-week EMA near $10.46, its 50-week EMA near $11.27, its 100-week EMA near $12.55, and its 200-week EMA around $12.65. For technical traders, clearing all four levels is a meaningful development because it suggests the market is no longer simply reacting from depressed prices; it is beginning to build a broader recovery structure.

Holding above that EMA cluster strengthens the argument that the August lows marked an accumulation phase rather than the beginning of another sustained downtrend. Moving averages are not predictive by themselves, but they help traders evaluate whether price is transitioning from a corrective environment into a more constructive trend. When price rises above multiple long-term averages, the market often begins to attract attention from participants waiting for confirmation that downside momentum has faded.

The weekly relative strength index has also improved, climbing toward 63. That reading points to stronger momentum but does not yet show the kind of overheated condition associated with a move above 70. This is important because bullish setups can become less attractive when momentum indicators enter overbought territory too quickly. In LINK’s case, the RSI suggests buyers have gained control, while still leaving room for further upside if demand remains steady.

Cup-and-Handle Breakout Adds Short-Term Momentum

The four-hour chart has added a shorter-term bullish catalyst through a cup-and-handle setup. This pattern formed after LINK declined from around $13.30 in early September to roughly $10.50, then recovered back toward the same resistance area. After that rebound, price entered a brief downward-sloping consolidation phase, forming what technical traders identify as the handle portion of the structure.

LINK has now broken above both the handle’s descending resistance and the pattern’s neckline near $13.32. That breakout suggests the pattern has entered its active phase, placing a measured move target near $16.83. In practical terms, many traders are likely to treat the $16.80 area as the next key objective because it aligns closely with the projected cup-and-handle target and sits below the broader weekly resistance band.

The cup-and-handle target is typically calculated by measuring the depth of the cup and adding that distance to the breakout point. In LINK’s case, the setup projects roughly 24% upside from current levels toward the $16.83 area. While measured moves are not guarantees, they provide a framework for assessing risk and reward after a clean breakout. The stronger LINK holds above the neckline, the more credible that target remains for short-term momentum traders.

Why $16.80 Matters Before $18-$18.60

The $16.80 area has become the immediate focus because it represents the cup-and-handle measured objective. If LINK can advance toward that region, attention would likely shift to the larger $18-$18.60 resistance zone visible on the weekly chart. That upper band is important because it reflects a broader area where previous supply could reappear and where medium-term traders may consider taking profit or reassessing exposure.

A move from the current breakout area toward $16.80 would not, by itself, confirm a full trend expansion into the $18-$18.60 zone. However, it would put LINK much closer to the larger resistance structure and could encourage additional participation if volume and momentum remain supportive. In crypto markets, resistance zones often become more important as price approaches them, since traders begin to watch for signs of rejection, consolidation, or continuation.

For now, LINK’s structure is constructive because the token is trading above key moving averages on both the weekly and four-hour charts. The four-hour setup shows price above its 20-, 50-, 100-, and 200-period EMAs, while RSI has climbed to around 66. That combination suggests short-term momentum is still favorable, although traders will be alert to any sign that momentum begins to fade near the measured target.

The bullish setup would weaken if LINK loses the $13.32 breakout level. Because that area marks the cup-and-handle neckline, a drop back below it could suggest the breakout has failed or needs more time to develop. Failed breakouts often lead to fast retests of nearby support, especially when short-term traders exit positions that were opened on the initial move above resistance.

If LINK falls below $13.32, the $12.50-$12.65 area could come back into focus. That zone overlaps with the weekly 100-week EMA near $12.55 and the 200-week EMA around $12.65, giving it added technical importance. A pullback into that region would not automatically erase the broader recovery, but a sustained loss of the EMA cluster would make the accumulation thesis less convincing.

Risk management remains important because crypto breakouts can be volatile. LINK has shown improving structure, but the market still needs to defend reclaimed levels for the breakout to maintain credibility. As long as the token holds above $13.32 and remains supported by its key EMAs, technical traders are likely to keep $16.80 as the immediate upside target and $18-$18.60 as the next major resistance zone.

Chainlink’s latest price action gives bulls a clearer technical roadmap than they had during the early August lows. The recovery from the roughly $8 area, the reclaim of the $7.01-$9.48 accumulation zone, the move through the weekly EMA cluster, and the four-hour cup-and-handle breakout all point to a market attempting to shift from accumulation into expansion.

Still, the setup remains conditional. The bullish case depends on LINK continuing to hold above the breakout neckline near $13.32 and avoiding a sustained move back below the $12.50-$12.65 support area. If buyers defend those levels, the path toward $16.80 remains open. If LINK then clears or consolidates constructively near that area, the $18-$18.60 band could become the next focal point for market participants.

For FXCOINZ readers, the key takeaway is that LINK’s technical structure has improved materially, but the market is now entering a stage where follow-through matters. The breakout has delivered a clearer upside target, yet confirmation will come from whether buyers can defend reclaimed support and sustain momentum into the next resistance zone.

Frequently Asked Questions (FAQs)

Chainlink is trading in a constructive technical setup after recovering from the roughly $8 area seen in early August and moving near $13.56 on Sept. 25. The token has cleared several important weekly EMAs and broken out from a four-hour cup-and-handle pattern.

The immediate upside target is near $16.80, with the cup-and-handle measured move projecting a level near $16.83. If LINK reaches that area with strong momentum, the broader $18-$18.60 resistance zone could become the next major focus.

Why is the $13.32 level important?

The $13.32 area marks the cup-and-handle neckline and breakout level. Holding above it helps keep the bullish structure intact, while a loss of that level could weaken the breakout and expose lower support.

If LINK loses the $13.32 breakout level, traders may watch the $12.50-$12.65 area. This zone is important because it aligns closely with longer-term weekly EMA support, including the 100-week EMA near $12.55 and the 200-week EMA around $12.65.

What does the weekly RSI suggest?

The weekly RSI has climbed toward 63, showing improving momentum. It remains below the overbought threshold above 70, which suggests the move has strengthened without yet entering a clearly overheated zone.

LINK has moved above its 20-week EMA near $10.46, 50-week EMA near $11.27, 100-week EMA near $12.55, and 200-week EMA around $12.65. Holding above this group supports the view that the August lows may have formed part of an accumulation phase.

What is a cup-and-handle pattern?

A cup-and-handle pattern is a bullish chart formation where price drops, recovers in a rounded structure, then consolidates briefly before breaking above resistance. In LINK’s case, the pattern developed after a move from around $13.30 to roughly $10.50 and back toward resistance.

Yes. The $16.80 target is based on a technical measured move, not a guaranteed outcome. The setup would weaken if LINK falls below the $13.32 breakout level or loses support near the $12.50-$12.65 area.

The broader resistance zone sits between $18 and $18.60. This area is significant on the weekly chart and could become the next major test if LINK successfully advances toward the $16.80 region.