Chainlink (LINK) recently formed a double-bottom pattern, indicating a potential rebound in its price. The coin hit a low of $20.12 before bouncing back to $22.50 on Sunday, Dec. 22. Despite this recent increase, LINK is still down by about 27% from its highest point this month, suggesting that it is currently in a bear market. However, signs are pointing towards a possible turnaround for the cryptocurrency as some whales have been accumulating the token.
According to data from LookOnChain, nine new wallets recently withdrew a total of 362,380 LINK coins from Binance, which is valued at over $8.19 million. This accumulation by whales could serve as a catalyst for an upward movement in LINK’s price. Additionally, a whale purchased 65,000 LINK coins worth $1.8 million, further indicating bullish sentiment towards the cryptocurrency.
The whales accumulating LINK tokens are not the only positive indicators for the coin. Chainlink is widely recognized in the crypto industry for its strong fundamentals and is currently the largest oracle provider with over $35 billion in total value secured. This puts it ahead of its competitors such as Chronicle, Pyth, Edge, and Redstone. Furthermore, Chainlink’s ecosystem is expected to expand as more blockchain networks adopt its technology. Recently, Tron, led by Justin Sun, transitioned from WINKLink to Chainlink’s oracles, highlighting the growing adoption of Chainlink’s services.
In addition to its technological advancements, Chainlink has also secured major partnerships in the Real World Asset tokenization industry with companies like Coinbase, Emirates NBD, SWIFT, and UBS. These partnerships further enhance Chainlink’s position in the market and provide a solid foundation for future growth. With these positive developments, it is likely that Chainlink will continue to attract investors and expand its ecosystem in the coming months.
Technically, LINK has shown signs of a potential rebound as it remains above the 50-day moving average on the daily chart. The formation of a double-bottom pattern at $20.12 and an inverse hammer pattern suggest a bullish reversal in LINK’s price. If the coin manages to maintain its current levels and breaks above the key psychological level at $30, it could further attract investors and push its price higher. However, a drop below the double-bottom point at $20.12 would invalidate the bullish view and could lead to further downside for the cryptocurrency.
