Chainlink (LINK) Eyes $40 as Bull Flag Builds on Weekly Chart - Here’s Why Traders Are Bullish

Chainlink's weekly chart just printed a textbook bull flag pattern—and it's pointing toward a potential breakout to $40.

The Setup: Why Technicals Favor LINK

That consolidation after recent gains? Classic flag formation. Traders see it as a pause before the next leg up, not a reversal. Volume patterns support the move, with accumulation quietly building during the sideways action.

Beyond the Chart: Oracles Eating the World

Chainlink's oracle network keeps expanding its moat—decentralized data feeds are becoming non-negotiable infrastructure for DeFi, RWA tokenization, and even traditional finance experiments. The token's utility case strengthens with every new integration.

The Target: $40 in Sight

A clean breakout above resistance could trigger a measured move toward the $40 zone. That level represents not just a psychological barrier but a key technical confluence from previous cycle action.

Of course, in crypto, even the prettiest chart can get rug-pulled by a macro tweet—but for now, the bulls are stacking LINK while Wall Street still tries to explain what an oracle actually does.

Weekly Setup Points to Possible Upside

Chainlink (LINK) is trading within a flag pattern on the weekly chart after a strong MOVE earlier this year. The structure shows a short-term downward channel that formed after a rally in July and August. This setup is commonly watched as a continuation pattern, with many traders monitoring it for a potential breakout.

At the time of writing, LINK is priced at $23. ROSE Premium Signals noted that the current price action fits the structure of a bull flag. The next move depends on whether LINK can push above the top of the channel. If it does, price levels of $35 and $40 are being considered as upside targets.

#LINK Bull Flag in Play

Chainlink is printing a textbook bull flag on the weekly timeframe
Price is consolidating inside the channel — a breakout could ignite the next leg up

Breakout above the channel resistance will likely lead to explosive momentum!

Targets:… pic.twitter.com/Nv31FzNVZd

— Rose Premium Signals (@VipRoseTr) September 16, 2025

Mixed Signals on the Daily and Intraday Charts

On the daily timeframe, LINK closed without a clear direction. According to CRYPTOWZRD, LINK/BTC also pulled back slightly but stayed above a previous resistance zone that now acts as a double bottom. The next push higher could confirm this pattern and set the stage for continued strength.

$30 is the next area to watch if momentum returns, while $20 remains a support zone on the daily chart. The analyst added that any moves following the FOMC event may also affect LINK’s short-term path. Near-term setups are expected to come from lower timeframes, depending on how the market reacts.

LINK Daily Technical Outlook:$LINK closed indecisively. We need more healthy price action and a directional lead from Bitcoin tomorrow during the FOMC event. My focus will be on the lower-time frame. Moving the above $24.00 intraday resistance would trigger the next long ‍pic.twitter.com/H34TQlMUtA

— CRYPTOWZRD (@cryptoWZRD_) September 17, 2025

In intraday movement, LINK saw quick swings. Holding above $24.00 is being watched as a possible signal for a surge with a target of $26.50. Support on this timeframe is set at $22.00.

Institutional Interest Continues to Expand

Several companies have increased exposure to LINK in recent weeks. As CryptoPotato reported, Caliber, a Nasdaq-listed firm managing both real estate and digital assets, disclosed a purchase of LINK tokens as part of its digital asset strategy. The company has not provided further details on the size of the position.

Grayscale Investments has filed for a chainlink ETF under the ticker GLNK. The application was made for NYSE Arca. Bitwise had submitted a similar proposal earlier. Both filings aim to give investors access to LINK through a regulated fund structure, without requiring direct token custody.

In addition, SAB confirmed a new agreement with Chainlink. The company shared that the partnership will focus on testing blockchain solutions for cross-platform communication. The work is part of broader goals to improve financial infrastructure in Saudi Arabia.

SAB said,

“This collaboration marks a pivotal step in our commitment to drive Financial Innovation in Saudi Arabia.”

No timeline or further technical details have been announced so far.