Date: Fri, Aug 01, 2025 | 07:10 AM GMT

The cryptocurrency market is in the middle of a notable pullback after Ethereum (ETH) faced strong resistance around $3,940 and has since retraced to $3,660 — a 5% daily drop. This decline has triggered broad weakness across altcoins, including Chainlink (LINK), which is down 8% on the day, reducing its monthly gains to 27%.

Despite the pullback, LINK’s price action is starting to mirror a historical pattern that previously led to a massive rally — and if history is about to repeat, the current correction could set the stage for a powerful bullish reversal.

Source: Coinmarketcap

Fractal Setup Hints at a Bullish Reversal

A closer look at the daily chart shows $LINK replicating a fractal pattern that first appeared in late 2024. Back then, LINK broke out of a downtrend line, reclaimed both its 100-day and 200-day moving averages, and briefly corrected into the 200-day MA before exploding higher — ultimately gaining over 140%.

Chainlink (LINK) Daily Chart/Coinsprobe (Source: Tradingview)

The current price structure is strikingly similar.

LINK has once again broken out of a descending trendline, reclaimed the 100-day and 200-day moving averages, and is now pulling back to retest the 200-day MA near $16.01 — the same kind of setup that sparked the last major rally.

If this fractal continues to play out, LINK must hold its 200-day moving average at $16.01. A bounce from this level would validate the pattern and may initiate a move toward its long-term ascending resistance trendline, currently projected around $40 — representing a potential upside of over 150% from current support.

However, if LINK fails to hold this key level, the next immediate support lies near the 100-day MA at $15.09. A drop below that could signal further short-term weakness and delay the bullish setup.

Whether history repeats itself remains to be seen, but the setup is one worth watching closely.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research and consult a professional before making investment decisions