Chainlink formed a double bottom pattern, indicating a potential rebound, as signs showed that some whales were accumulating the token.
Chainlink (connection), the largest oracle provider, bottomed at $20.12 on Friday and rebounded to $22.50 on Sunday, December 22. However, the coin remains up about 27% from its highest point this month, which means it is in a bear market.
One possible catalyst for the LINK token is that whales are collecting it. According to LookOnChain, nine new wallets have withdrawn 362,380 coins from Binance in the past two days. The value of these coins is now estimated at more than $8.19 million.
Crypto.news reported last week Another whale collected 65,000 LINK coins worth $1.8 million.
These whales bought Chainlink a week after World Liberty Financial (WLFI), the DeFi platform launched by the Trump family, purchased more than 78,300 LINK tokens worth more than $1.7 million. It should be noted that President-elect Trump and his family mostly own WLFI tokens.
Chainlink, known in the cryptocurrency industry for its fundamentals, is the largest oracle in the sector with a total guaranteed value of more than $35 billion. This number is higher than its biggest competitors such as Chronicle, Pyth, Edge, and Redstone.
The Chainlink ecosystem is likely to grow as more chains and networks embrace its technology. Justin has converted Suntron, and is the latest series to use its oracle WINKLink to Chainlink.
Chainlink has also formed major partnerships in the real-world asset tokenization industry, including by companies such as Coinbase, Emirates NBD, SWIFT, and UBS.
Chainlink price has formed a double bottom pattern
The price of LINK, like other cryptocurrencies, has fallen sharply in the past few days as concerns about the Federal Reserve continue.
The symbol remained above the 50-day moving average on the daily chart. More importantly, it formed a double bottom chart pattern at $20.12. This pattern occurs when an asset fails to move below a specified price twice. It is one of the most bullish reversal patterns in the market.
LINK has also formed a reversal hammer pattern, which is a popular reversal sign. Therefore, the coin is likely to bounce back in the next few days as investors target the key psychological level at $30, which is about 35% higher than the current level.
On the other hand, the bullish view will become invalid if the coin drops below the double bottom point at $20.12.
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