Chainlink price double bottoms as whales accumulate

Chainlink has formed a double bottom pattern, indicating a potential recovery due to signs that some whales are accumulating tokens.

The largest oracle provider, Chainlink (LINK), bottomed at $20.12 on Friday and rose to $22.50 on Sunday, December 22. Still, the cryptocurrency remains at around 27% from its high point this month, meaning it is in a bear market.

A potential catalyst for the LINK token is that whales are accumulating it. According to LookOnChain, nine new wallets withdrew 362,380 coins from Binance in the last two days. These coins are now worth over $8.19 million.

Crypto.news reported last week that another whale had accumulated 65,000 LINK coins worth $1.8 million.

Whales are accumulating $LINK!

We noticed 9 new wallets with withdrawals amounting to 362,380 $LINK($8.19 million) #Binance in the last 48 hours.

Address:
0xdA44049389F87c1170C5e7319c9eb93acDf83304
0xC10396589a40438CcdF48bA1b2061a6067DAa972
0x5199b3Ce02a912056ea8A460371aD83020693F6C… pic.twitter.com/vpAMR0dhbd

— Lookonchain (@lookonchain) December 22, 2024

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 over $1.7 million. It is worth noting that President-elect Trump and his family mostly own WLFI tokens.

Known for its foundations in the crypto industry, Chainlink is the largest oracle in the industry with a total value of over $35 billion secured. This figure is higher than its biggest competitors such as Chronicle, Pyth, Edge and Redstone.

Chainlink’s ecosystem will likely grow as more chains and networks adopt technology. The newest chain to use their Oracle, Justin Sun’s Tron, has moved from WINKLink to Chainlink.

Chainlink has also established major partnerships in the Real World Asset tokenization sector, including companies such as Coinbase, Emirates NBD, SWIFT and UBS.

Chainlink price formed a double bottom formation

LINK, like other cryptocurrencies, has fallen sharply in the last few days due to ongoing concerns regarding the Federal Reserve.

The token remained above the 50-day moving average on the daily chart. Most importantly, it formed a double-bottom chart pattern at $20.12. This pattern occurs when an asset fails to fall below a certain price twice. It is one of the most bullish reversal patterns in the market.

LINK also formed the inverted hammer pattern, which is a popular reversal sign. Therefore, the coin is likely to recover in the next few days as investors target the key psychological level at $30, which is around 35% above the current level.

On the other hand, the bullish view will be invalidated if the cryptocurrency falls below the double bottom of $20.12.

LINK price chart | Source: crypto.news