Chainlink Monthly Chart Intact After Flush, Could Signal Bullish Breakout Above Key Resistance

• Monthly pennant pattern for Chainlink (LINK) remains intact after the recent flush.

• Whales appear to have increased short exposure ahead of the drop, creating a liquidity sweep that formed long candle wicks.

• Measured-move projections from the pattern show theoretical upside that can extend toward large round-number targets if resistance is breached; risk management is essential.

Chainlink monthly chart shows a lasting pennant after a sharp flush; LINK offers a tactical buy zone—read COINOTAG analysis and action points for traders.

By COINOTAG | Published: 2025-10-14 | Updated: 2025-10-14

Chainlink’s remains intact despite recent flush, hinting at a strong bullish breakout after years of resistance buildup.

• Monthly chart shows Chainlink’s long-term pennant pattern intact despite sharp flush.
• The recent price moves hint at some behind-the-scenes activity, with big players likely taking short positions just before the weekend.
• If LINK breaks through the resistance it could rally to new highs toward $1,000.

Chainlink (LINK) is trading at $18.32 at the time of this report. Despite the recent pullback, multi-year technical structure suggests current levels could provide a disciplined entry for investors and traders who respect risk parameters.

What is the Chainlink monthly chart indicating?

The Chainlink monthly chart shows a multi-year pennant: rising support converging with persistent horizontal resistance. The pattern has remained structurally intact through a recent sharp flush, which produced long wicks and a volume spike; these are consistent with a liquidity sweep rather than a confirmed trend reversal.

How did whales and weekend timing influence the LINK flush?

Volume and order-book behaviour around the flush suggest a concentrated push from large holders. The drop occurred after market hours and before a weekend, a timing often used to create directional pressure with reduced counterflow. Coinotag market strategist commented: “The candle wicks and intraday volume profile point to a liquidity hunt — smart money trimmed positions to force stop-losses and then accumulated at lower prices.”

Exchange and on-chain metrics (plain text references: Glassnode, Coin Metrics) recorded elevated exchange inflows and short interest concentration in the 24 hours leading up to the flush. These indicators align with a targeted move to expand available liquidity.

Resistance levels, breakout criteria, and scenario analysis

Resistance near the pennant’s upper boundary remains the critical line in the sand. Technical confirmation of a bullish breakout requires a monthly close above that level on sustained volume. Short-term momentum indicators and relative strength measures should confirm the move; without confirmation, retests of lower support are possible.

Measured-move techniques applied to the pennant indicate a theoretical extension that can reach materially higher price levels if the breakout is validated. These projections are chart-derived scenarios, not price guarantees: they assume a clean breakout, supportive macro liquidity and continued demand for Chainlink’s use cases.

What should traders watch next?

Monitor monthly close behavior, exchange net flows, and on-chain deposit/withdrawal patterns (plain text sources: Glassnode, Coin Metrics). Pay special attention to long wick formations on higher time frames — they can signal failed breakdowns or continued volatility. Use defined position sizing and stop placement; the current setup rewards patience and strict risk rules.

Frequently Asked Questions

Is the recent Chainlink flush a sign of structural weakness in LINK?

Not necessarily. The monthly structure shows a persistent pennant pattern. The flush produced long wicks on higher-timeframe candles and coincided with elevated volume, consistent with a liquidity sweep that removed weak hands rather than a confirmed structural breakdown.

How can I position for a possible Chainlink breakout?

Consider staggered entries with predefined risk per tranche, watch for a monthly close above the resistance line as confirmation, and use on-chain and exchange metrics to gauge genuine demand. Speak with a licensed financial advisor for personal guidance.

Key Takeaways

• Pennant Intact: Multi-year rising support and horizontal resistance remain the dominant structure.
• Flush Likely Liquidity Hunt: Timing and volume suggest large players executed a targeted flush to capture liquidity.
• Plan for Confirmation: Wait for a confirmed monthly breakout above resistance and use strict risk management; measured moves show large theoretical upside but are not certainties.

Conclusion

The Chainlink monthly chart retains a long-term bullish pennant despite a sharp weekend flush. Evidence from price action, volume, and on-chain indicators (plain text references: Glassnode, Coin Metrics) supports the view that the drop was likely a liquidity-seeking event rather than a full structural reversal. COINOTAG recommends watching for a decisive monthly close above resistance and treating current levels as a tactical accumulation window only with disciplined risk controls. Stay informed and trade with a plan.

Author: COINOTAG — Editorial and Market Research | Published: 2025-10-14 | Updated: 2025-10-14