- Chainlink confirmed a double bottom at $11.50 with a breakout above $18, setting a technical price target of $24.
- LINK retests the neckline zone near $18, now acting as support, with bulls defending the structure to maintain upside momentum.
- The price trades above the 20-day EMA at $17.42, while volume decline and an oversold RSI suggest a potential bullish continuation.
Chainlink ($LINK) is showing renewed strength after retesting the neckline of a confirmed double bottom pattern. According to a recent tweet from Bitcoinsensus, the asset is in a critical phase near the $18 level, which could determine its next move.
Classic Double Bottom Confirmed, Target Set at $24
Bitcoinsensus highlighted that Chainlink has formed a textbook double bottom formation on the daily timeframe, a reliable bullish reversal pattern. The two major lows near $11.50 in April and July created a distinct “W” shape. A breakout above the neckline at $18 confirmed the pattern, signaling a potential upside continuation.
The tweet emphasized that the price is currently retesting this neckline around the $18 zone. This retest, viewed as a healthy confirmation of the breakout, suggests strong underlying demand. Having confirmed the breakout, TA pinpoints potential levels of $24 after calculating the distance between the base and the neckline and using it on the breakout level. At the present price of around $18, LINK is in a good position to rise, as long as the bullish setup holds.
Short-Term Pullback Meets Key Support
As of press time, LINK trades at 17.76, down marginally following its new high of around $20. However, the asset is still trading above the 20-day exponential moving average (EMA) at the level of $17.42, further supporting the bullish mood.
The daily chart shows that LINK is testing a key support range between $17.40 and $18. The zone aligns with both the EMA and the neckline of the double bottom. While short-term momentum has slowed—reflected by a bearish crossover in the Stochastic RSI and reduced trading volume—buyers appear active around this support. Holding this level could restore momentum toward the projected $24 target.
Bulls Must Defend Structure
This price region is now critical. Continued trading above 18 would keep the bullish pattern intact and continue the upward pressure. On the other hand, a collapse below this level may subject LINK to another downside towards the support zone of around $16.00.
For now, the structure remains bullish, and the $18 level is the line bulls are defending to maintain the uptrend.
