Key Insights:
- Chainlink is forming a double bottom pattern, signaling a potential breakout to $21.
- Whale activity remains strong, with 67% of LINK held by large investors.
- Sergey Nazarov attends the White House Crypto Summit, will thisi positively impact LINK price?
Chainlink price is showing signs of a potential breakout as market analysts point to a double bottom pattern forming on the chart. This pattern is considered to be a bullish reversal signal and often seen as a potential indication of rising prices in the near future. According to market analyst Ali, if LINK confirms this pattern, it could break out towards $21.
At the same time, Chainlink’s co-founder Sergey Nazarov is participating in the White House Crypto Summit, where discussions on regulation, adoption, and the future of cryptocurrency are taking place.
Double Bottom Pattern Suggests Potential Upside
A double bottom pattern is a technical pattern that occurs when a price first falls, rebounds and then falls again to basically the same level before a prospective rally. Breakout from this pattern with increased trading volume would signal that a downtrend is weakening.
Currently LINK is trading in a range, with support at around $15.50 – $16 and resistance at $18.50 – $20. A move above $18 50 could however pave the way for more upside targeting the $21 analyst target.
The MACD and RSI are pointing to a technical moment that has started to shift in this trade. The RSI is getting closer to the midline at 50 region, currently at 49.05 level. Meanwhile, the MACD line is above the signal line meaning that selling pressure is slowing, and there may be more buying pressure.
Furthermore, market analyst CryptoBusy, Chainlink is showing strong momentum and could see a major rally. At 300% increase from the current price, LINK could come close to reclaiming its all time high (ATH) of $52. Besides that, the correlation of 0.92 with Bitcoin also indicates that if Bitcoin could bounce back, then it could provide a push back to the price action in LINK.
Whale Accumulation and Institutional Interest
However, Chainlink price still retains large investors’ interest, as large holders hold over 67% of the total supply. In the past week, institutional engagement has been very active given that transactions higher than $100K amounted to $754.07M.
Also, negative exchange netflows -$4M indicate that most LINK is getting withdrawn from exchanges for long-term holding. This trend allows selling pressure to be diminished further aiding the bullish outlook of the asset.
However, the U.S. government appears to hold LINK, according to CryptoRank_io, raising suspicions about whether the coins can be added into strategic crypto reserves. TedPillows, among some analysts, believes that LINK could become part of the Stragetic Crypto Reserve helping to further support for the long term the price.
What Next For Chainlink Price?
The support zone is between $15.50 and $16.00, where buyers have previously stepped in to prevent further declines. Holding above this range is crucial for maintaining the current trend and avoiding a deeper pullback.
From the resistance front, LINK has key hurdles against $18.50 and $20.00. Breaking above such levels could result in a move to $21 and beyond. With buying pressure going up and LINK holding its higher low structure, the price could gain steam towards the direction of this breakout target.
However, should LINK continue to drop below the $17.00 level, we may see further consolidation or a further retest of lower support levels.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.