Chainlink price double bottoms as whales accumulate

As a seasoned crypto investor with over a decade of experience navigating the volatile cryptocurrency market, I have learned to read between the lines and spot promising opportunities when they present themselves. The recent double-bottom pattern formation by Chainlink (LINK) has certainly piqued my interest.

Chainlink formed a double-bottom pattern, pointing to a potential rebound, as signs showed that some whales were accumulating the token.

On Friday, Chainlink (LINK), the largest oracle service provider, hit a low of $20.12. However, by Sunday, December 22nd, it had risen to $22.50. Despite this increase, the coin is currently approximately 27% below its highest point this month, indicating that it’s in a downward trend, or what is commonly referred to as a bear market.

As an analyst, I’ve noticed a potential catalyst for LINK token: Whales seem to be amassing it. According to LookOnChain, nine fresh wallets have withdrawn approximately 362,380 coins from Binance within the last two days. Currently, these coins are worth over $8.19 million, hinting at a growing interest and potential increase in value for the LINK token.

According to a recent report from Crypto.news, it was revealed last week that yet another large investor (often referred to as a ‘whale’) added 65,000 LINK coins to their holdings, equating to approximately $1.8 million in value.

Whales are accumulating $LINK!

We noticed 9 fresh wallets that withdrew 362,380 $LINK($8.19M) from #Binance in the last 48 hours.

Address:
0xdA44049389F87c1170C5e7319c9eb93acDf83304
0xC10396589a40438CcdF48bA1b2061a6067DAa972
0x5199b3Ce02a912056ea8A460371aD83020693F6C…

— Lookonchain (@lookonchain) December 22, 2024

A week following the acquisition of more than 78,300 Chainlink tokens by World Liberty Financial (WLFI), a DeFi platform linked to the Trump family, these whales made their purchase. It’s important to mention that President-elect Trump and his family predominantly hold WLFI tokens.

In the realm of cryptocurrencies, Chainlink stands out for its robust foundations and currently holds the title as the largest oracle in the industry, with a total value of more than $35 billion secured. This amount surpasses that of its main competitors such as Chronicle, Pyth, Edge, and Redstone.

It’s highly probable that Chainlink’s network will expand as additional blockchains and networks adopt its technology. Notably, Justin Sun’s Tron is the latest addition to this list, having recently switched from WINKLink to Chainlink oracles.

Chainlink is also collaborating with significant entities within the realm of Real-World Asset tokenization, such as Coinbase, Emirates NBD, SWIFT, and UBS.

Chainlink price formed a double-bottom pattern

Over the recent days, I’ve noticed a significant downturn in the value of my analysis subject, much like many other cryptocurrencies. This drop appears to be largely due to ongoing apprehensions regarding the Federal Reserve and their monetary policies.

On the daily chart, the token consistently stays above its 50-day moving average, which is significant. Moreover, it has developed a double-bottom chart structure at $20.12. This pattern arises when an asset fails to dip below a certain price level on two occasions. It’s a particularly optimistic reversal pattern often seen in the market.

As a research analyst, I’ve noticed that the asset I’m studying has taken shape as an inverse hammer pattern – a well-recognized reversal indicator. Consequently, I anticipate a potential rebound for this asset in the upcoming days, as market participants seem to be eyeing the significant psychological level at $30, which represents approximately a 35% increase from its current value.

If the coin’s price falls below the key level of $20.12 (the double-bottom point), the optimistic perspective no longer holds true.

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2024-12-22 16:56