Whale Accumulation Leads to Double Bottom Formation in Chainlink Price
Chainlink (LINK), the largest provider of oracle services, experienced a low of $20.12 on Friday and recovered to $22.50 on Sunday, December 22nd. However, the coin is still down about 27% from its peak this month, indicating that it is in a bear market.
One potential factor that could drive the price of the LINK token is the accumulation by whales. According to LookOnChain, nine new wallets withdrew 362,380 coins from Binance in the past two days, which are now valued at over $8.19 million. Last week, Crypto.news reported that another whale acquired 65,000 LINK coins worth $1.8 million.
These whales made their purchases one week after World Liberty Financial (WLFI), a DeFi platform launched by the Trump family, bought more than 78,300 LINK tokens worth over $1.7 million. It is worth noting that President-elect Trump and his family primarily hold WLFI tokens.
Chainlink, known for its strong fundamentals, is the leading oracle in the crypto industry, securing over $35 billion in total value. This figure surpasses its major competitors such as Chronicle, Pyth, Edge, and Redstone.
As more chains and networks adopt Chainlink’s technology, its ecosystem is expected to expand. Justin Sun’s Tron recently switched from WINKLink to Chainlink, further contributing to its growth.
Chainlink has also established significant partnerships in the Real World Asset tokenization industry, collaborating with companies such as Coinbase, Emirates NBD, SWIFT, and UBS.
The price of Chainlink has formed a double-bottom pattern, similar to other cryptocurrencies, as concerns about the Federal Reserve persist.
On the daily chart, the token has remained above the 50-day moving average. Notably, it has formed a double-bottom chart pattern at $20.12. This pattern occurs when an asset fails to drop below a specific price level twice and is considered one of the most bullish reversal patterns in the market.
Additionally, LINK has formed an inverse hammer pattern, a popular signal for a reversal. Therefore, the coin is expected to rebound in the coming days, with investors targeting the key psychological level of $30, which is approximately 35% higher than the current level.
However, if the coin falls below the double-bottom point at $20.12, the bullish outlook will no longer be valid.
