Market Overview for Chainlink/Yen (LINKJPY) – 2025-10-08

• • •
• Chainlink/Yen (LINKJPY) traded in a tight range before breaking out with bullish momentum in the 24-hour period.
• Price action shows key support near 3320 and resistance at 3380, with consolidation observed in the final 12 hours.
• Volume was choppy but surged during the breakout in late night ET, confirming strength.
• RSI shows overbought conditions mid-day, suggesting potential pullback or consolidation ahead.
• Bollinger Bands constricted before expanding, indicating a period of low volatility followed by a breakout.

At 12:00 ET – 1 on 2025-10-07, Chainlink/Yen (LINKJPY) opened at 3315 and reached a high of 3388 before closing at 3375 at 12:00 ET on 2025-10-08. The 24-hour volume totaled 18,815.15, with a turnover of approximately $63,000,000, reflecting moderate yet consistent liquidity.

Structure and formations indicate that key support levels are at 3320–3340, with a strong bearish rejection observed around 3340 in the early morning hours. Resistance levels are forming around 3370–3380, with a bullish breakout observed in the early afternoon. A notable bullish engulfing pattern appeared at 08:45 ET, signaling a potential shift in sentiment. A doji candle formed at 11:45 ET, indicating indecision and possible consolidation ahead.

Moving averages on the 15-minute chart show a clear bullish crossover: 20-period MA crossed above the 50-period MA around 08:30 ET, confirming the uptrend. Daily moving averages (50, 100, 200) are aligned to the upside, supporting a broader bullish trend. Price action remains above all major moving averages, suggesting continued buying pressure.

RSI reached overbought territory in the midday hours, peaking at 70, indicating potential exhaustion of bullish momentum. MACD crossed above the signal line in the late morning, confirming the strength of the breakout. Bollinger Bands were in a contractionary phase until 08:00 ET, after which price surged and expanded the bands. Price is currently hovering near the upper band, suggesting a continuation of the breakout could be in play.

Volume distribution shows a sharp increase during the 08:00–11:00 ET timeframe, coinciding with the breakout phase. This is a strong confirmation of the bullish move. No notable divergences were observed between price and turnover, indicating solid conviction from buyers.

Fibonacci retracement levels applied to the 15-minute swing from 3315 to 3388 show key levels at 3343 (38.2%), 3356 (50%), and 3368 (61.8%). Price is currently hovering near the 61.8% level, which may act as a short-term resistance or consolidation zone. On the daily chart, the 50% retracement level is at 3355, aligning with the current price action and suggesting potential for a pullback or a test of stronger resistance above 3380.

The breakout from consolidation and the formation of bullish patterns suggest that Chainlink/Yen could see a continuation of the upward trend in the next 24 hours, with 3380 as a near-term target. However, a pullback to the 3340–3350 range should be monitored for potential re-entry opportunities. Investors are advised to watch for a rejection or a break of the 3380–3385 level as a confirmation of further bullish momentum.

Backtest Hypothesis
The backtesting strategy involves entering a long position after a bullish engulfing pattern forms near key support levels and when RSI crosses above 50, confirming momentum. A stop-loss is placed just below the pattern’s low, and a take-profit is set at the 61.8% Fibonacci retracement level. This strategy aligns with the current technical setup, where the 08:45 ET engulfing pattern and RSI crossover occurred at 3340, a key support zone. A backtest over the last 12 candles would suggest that this strategy would have captured a significant portion of the subsequent rally, with tight risk-to-reward ratios.