Chainlink has established a double-bottom pattern, indicating a possible rebound, as evidence suggests that certain whales are accumulating the token.
Chainlink (LINK), the leading oracle provider, reached a low of $20.12 on Friday and bounced back to $22.50 by Sunday, December 22. However, the token is still approximately 27% below its peak earlier this month, placing it in a bear market.
A potential trigger for the LINK token’s recovery is the accumulation by whales. As reported by LookOnChain, nine new wallets have withdrawn 362,380 coins from Binance in the past two days. The current value of these tokens exceeds $8.19 million.
Crypto.news noted last week that another whale acquired 65,000 LINK tokens worth $1.8 million.
The accumulation of Chainlink by these whales occurred shortly after World Liberty Financial (WLFI), the DeFi platform established by the Trump family, purchased over 78,300 LINK tokens valued at more than $1.7 million. Notably, President-elect Trump and his family primarily own WLFI tokens.
Chainlink is esteemed in the crypto sector for its strong fundamentals and is the largest oracle provider, securing over $35 billion in total value. This figure surpasses that of its closest competitors, including Chronicle, Pyth, Edge, and Redstone.
The ecosystem around Chainlink is expected to expand as more chains and networks adopt its technology. Recently, Justin Sun’s Tron has transitioned from WINKLink to Chainlink for its oracle services.
Chainlink has also established significant partnerships in the Real World Asset tokenization field with major companies such as Coinbase, Emirates NBD, SWIFT, and UBS.
Chainlink price formed a double-bottom pattern
Similar to other cryptocurrencies, LINK has experienced a sharp decline in recent days due to ongoing concerns about the Federal Reserve.
The token has managed to stay above the 50-day moving average on the daily chart and has formed a double-bottom chart pattern at $20.12. This pattern is created when an asset does not fall below a specified price on two separate occasions, making it one of the most favorable reversal patterns in the market.
Moreover, LINK has also created an inverse hammer pattern, recognized as a popular reversal indicator. Consequently, the token is expected to rebound in the coming days as investors set their sights on the important psychological level of $30, which is roughly 35% above the current price.
Conversely, the bullish sentiment will be negated if the token falls below the double-bottom threshold at $20.12.
