Ethereum News Today: "Chainlink’s $16 Re-test Could Ignite a 350% Bull Run or Trigger a Sharp Collapse"

Chainlink (LINK) has recently been the focus of heightened technical and market analysis as the token trades within a narrowing range that has kept investors and traders on edge. A prominent symmetrical triangle pattern has emerged on LINK’s weekly chart, indicating a potential consolidation period that could lead to a significant breakout. Analysts and traders are closely monitoring critical support zones, particularly the $16 level, which has become a key focal point for both short-term and long-term price projections.

The pattern, which has been forming since 2021, suggests that a final retest of the $16 support zone could serve as the catalyst for a strong bullish move. If buyers manage to defend this level, the path toward $31.88 becomes more viable, with the potential for further upside extending to $52.30 and even triple-digit territory near $100 based on Fibonacci extension levels. This scenario represents a nearly 350% gain from current levels and would mark a new all-time high for the asset [1].

Market data as of September 6, 2025, shows that Chainlink is trading at $22.29, with a 0.23% decline in the 24-hour period. Despite this modest drop, the token maintains a global market rank of 13 and a market capitalization of approximately $15.1 billion. The available supply of 678,099,970 tokens continues to support liquidity and engagement across major exchanges. Daily trading volume remains steady at around $1.23 billion, reflecting consistent activity from both retail and institutional investors [1].

On the technical chart, the token has shown bearish momentum in the short term, with a 1.03% decline observed at the time of writing. This follows a strong rally in early August that pushed prices to $27.87 before sellers regained control. The token is now hovering just above a key support level at $19.53. Technical indicators, including the MACD and RSI, reinforce the bearish tone. The MACD line is below the signal line, with negative histogram bars, while the RSI stands at 46.75, below the neutral 50 level. These signals suggest that bearish forces are currently dominant, though the asset is not yet in oversold territory [1].

Analyst Ali Martinez has highlighted the significance of a potential pullback to $16, describing it as the “most bullish setup” for Chainlink holders. Martinez’s analysis is based on Fibonacci retracement levels, with the $16 area aligning with the 0.5 retracement level. This level is often where accumulation and renewed buying pressure emerge. If the token retests this zone and holds, it could signal the beginning of a multi-month rally, potentially pushing prices beyond $31.88 and into triple-digit territory. However, a breakdown below $16 could invalidate the bullish thesis and send the token toward lower support levels at $12 or even $9 [2].

Chainlink’s institutional adoption is also gaining traction, with Bitwise recently filing for a spot Chainlink ETF. If approved, this move could provide regulated access to LINK through a Delaware trust structure and significantly boost the token’s profile. The institutional interest is further underscored by the token’s strong performance over the past year, with a 109% increase in price [4].

In conclusion, Chainlink is at a pivotal juncture as it trades within a long-term symmetrical triangle pattern. The retest of $16 remains a critical event for both short-term volatility and potential long-term upside. Investors and traders are advised to monitor key technical levels and institutional developments as the token approaches a decisive moment in its price trajectory.

Source: [1] Chainlink symmetrical triangle signals $16 retest before ... (https://bravenewcoin.com/insights/chainlink-symmetrical-triangle-signals-16-retest-before-100-target) [2] A Chainlink Pullback To $16 Could Set Up Parabolic Price ... (https://cryptorank.io/news/feed/87de3-a-chainlink-pullback-to-16-could-set-up-parabolic-price-rally-analyst) [3] LINK to ETH: Chainlink Price in Ether (https://www.coingecko.com/en/coins/chainlink/eth) [4] Ethereum Shows Strength As Chainlink Gains Traction, But ... (https://www.digitaljournal.com/pr/news/insights-news-wire/ethereum-shows-strength-chainlink-gains-132238785.html)