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Key Insights:
- Chainlink price has surged in the past four months.
- LINK has moved into the third stage of the Elliot Wave pattern.
- Whale buying and the recently launched LINK reserves will boost its price.
Chainlink price has more than doubled from its April lows, mirroring the performance of Bitcoin and other altcoins. Still, LINK’s bullish chart patterns and the strong fundamentals point to more gains. It is potentially to last year’s high of $30.85, up by 45% from the current level.
Chainlink Price Technical Analysis Signals More Gains
Technical analysis shows that the Chainlink crypto has more gains in the coming weeks or days. The daily timeframe chart shows that the LINK token formed a double-bottom pattern at $10.96 in April and June.
Its neckline was at $17.90, its highest level in May this year, a level it has already moved above. Subtracting the double-bottom and the neckline gives it a height of $6.95. Adding this figure to the neckline gives the price a target of $25.
Chainlink price formed a golden cross pattern in July, confirming this breakout. This cross happens when the short-term moving average crosses above the long-term average. In this case, the 50-day EMA moved above the 200-day on July 23rd and has remained above the two since then.
LINK has also flipped the critical resistance level at $20.15 into support. Moving above that price was vital as it invalidated the double-top chart pattern.
There are signs that the Chainlink crypto is forming the Elliot Wave pattern. This typical pattern in technical analysis identifies five distinct waves an asset goes through during a bull market.
In this case, it formed the first wave between June 22nd and July 21, peaking at $20.16. It then moved into the second phase between July 22 and Tuesday last week. The second phase is usually a short bearish one.
LINK has moved into the third phase, the longest and most bullish. If this is the case, Chainlink price will likely jump to $25.45, the 23.6% retracement level.
This way, it will match the double bottom’s target. The coin will then move into the fourth corrective phase, drop to $22, and surge to last year’s high of $30.
Whales Continue to Buy LINK Token as Exchange Supplies Dive
The other key reason the Chainlink crypto may surge is that large investors have continued accumulating it. Data shows these investors have boosted their holdings by 40% to 4.57 million in the last 90 days. These investors hold assets worth nearly $100 million based on their current price.
Whale purchases are usually a good signal because these investors are optimistic that the price will continue surging over time. Indeed, as the chart below shows, Chainlink price has jumped by 92%. This happened since they started ramping up their purchases on June 20.
There are signs that investors are not selling their LINK tokens aggressively as exchange balances have fallen. There are now 274 million tokens on exchanges, the lowest level since June 19.
LINK Reserves and Strong Partnerships to Boost Chainlink Price
Last week, one of the top Chainlink news stories was the launch of its reserve LINK strategy. In this, Chainlink will channel the revenue it generates on-chain and from its enterprise partners towards accumulating LINK tokens. This creates instant demand.
Meanwhile, Chainlink partners with some of the biggest companies, such as SWIFT and JPMorgan. Its partnership with SWIFT is notable as it will help it simplify the money transfer industry.
Many companies also use their CCIP product in real-world asset tokenization activities. CCIP is highly useful as it helps to link data from multiple chains without the need for bridging.
Chainlink price has rebounded in the past few months. This rally has more room to run, as evidenced by its strong technicals, including the Elliot Wave and double-bottom patterns. The strong fundamentals in the DeFi and RWA industries also support it.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
