DailySun
Chainlink has established a double-bottom pattern, indicating a possible recovery, as evidence suggests that some whales have been accumulating the token.
Chainlink (LINK), the leading oracle provider, reached a low of $20.12 on Friday and saw a rise to $22.50 by Sunday, December 22. Despite this, the coin is still approximately 27% away from its peak this month, indicating it is in a bear market.
A potential driver for the LINK token’s movement is the accumulation by whales. According to LookOnChain, nine new wallets took out 362,380 coins from Binance within the last two days, worth over $8.19 million at current prices.
Crypto.news reported last week that another whale had acquired 65,000 LINK tokens valued at $1.8 million.
These whale purchases occurred just a week after World Liberty Financial (WLFI), a DeFi platform launched by the Trump family, acquired over 78,300 LINK tokens worth more than $1.7 million. Notably, WLFI tokens are predominantly owned by President-elect Trump and his family.
Recognized for its fundamentals, Chainlink leads the crypto sector as the largest oracle, securing over $35 billion in total value—outpacing its nearest competitors such as Chronicle, Pyth, Edge, and Redstone.
Chainlink’s ecosystem is poised for expansion as more chains and networks adopt its technology. Recently, Justin Sun’s Tron has transitioned from WINKLink to Chainlink to utilize its oracles.
Additionally, Chainlink has forged significant partnerships in the Real World Asset tokenization space with firms like Coinbase, Emirates NBD, SWIFT, and UBS.
Chainlink price has formed a double-bottom pattern
Similar to other cryptocurrencies, LINK has experienced a steep decline in the past days amid ongoing concerns regarding the Federal Reserve’s policies.
The token has maintained its position above the 50-day moving average on the daily chart. Notably, it has developed a double-bottom chart pattern at $20.12, which occurs when an asset fails to drop below a designated price level on two occasions—considered one of the most bullish reversal patterns in trading.
LINK has also shown signs of an inverse hammer pattern, another well-known reversal indicator. Thus, the coin is expected to rebound in the coming days with investors targeting the crucial psychological level of $30, which is approximately 35% above the current price.
Conversely, this optimistic outlook will be negated if the coin falls below the double-bottom level of $20.12.
