Chainlink is showing technical signs similar to last month, suggesting the potential for repeat growth.
Repeating Technical Structure
Analyst Lark Davis highlighted that Chainlink's chart mirrors last month's sequence. A bull pennant formed in early August, followed by a breakout that coincided with a MACD golden cross. This rally boosted the token's price from $18 to nearly $28 within days.
The current structure shows another bull pennant forming from late August into September. The breakout has already emerged, and MACD lines are nearing a cross at almost the same level as in August. This alignment attracts attention as traders look for a possible repeat of the prior move.
Market Activity Analysis
As of writing, Chainlink trades at $24.82, posting a daily decline of 0.96%. The price saw a session high near $25.50 before retracing under selling pressure. A support level appears at $24.50, while the $25 mark has seen sellers consistently cap rallies.
The token maintains a market capitalization of $16.83 billion with a circulating supply of 678.09 million LINK. The fully diluted valuation stands at $24.82 billion, reflecting limited disparity between circulating and maximum supply. Liquidity remains steady, though the last 24 hours saw volume fall 11.58% to $955 million.
The volume-to-market cap ratio sits at 5.68%, indicating moderate activity. Traders may view reduced participation as a signal of consolidation ahead of a larger move. Still, short-term market conditions suggest indecision within a tight range.
Resistance Levels Ahead
While the technical outlook aligns with August's bullish pattern, overhead resistance must be considered. Last month’s surge faced rejection between $28 and $30, a level that may again serve as a challenge.
If the MACD golden cross confirms alongside sustained breakout momentum, LINK could retest that resistance zone. However, traders remain cautious, as the prior rally stalled sharply once the price entered that band. Sustained buying volume would be essential to drive continuation.
The unfolding situation around Chainlink suggests opportunities for repeat growth, but sustained demand at the resistance level will be crucial for success.
