Chainlink Price Hints Bullish Trend As Exchange Reserves Collapse

Key Insights

• Chainlink price has jumped and is about to form a golden cross.
• LINK also formed the highly bullish double-bottom pattern.
• The token has highly bullish fundamentals like whale buying and falling exchange reserves.

Chainlink price rallied in the past four consecutive days, reaching its highest level in three months. LINK price is about to flash a bullish pattern known as a golden cross, pointing to more gains.

Recent partnerships, whale buying, and declining exchange balances bolster its strong technicals. This indicates further upside.

Chainlink Price Analysis Points to an 85% Surge

The daily timeframe chart indicates a strong Chainlink price surge in the coming weeks. It formed a giant double-bottom pattern at $10.87 and a neckline at $17.84.

A double bottom means that sellers are usually hesitant to place bearish orders at that price. It typically leads to a strong bullish breakout, with further upside confirmation when it moves above the neckline.

LINK price is about to flash a golden cross pattern. This could be seen as the spread between the 50-day and 200-day Weighted Moving Averages (WMA) narrows. A golden cross often leads to more upside.

Top oscillators are supporting the bullish breakout. The Relative Strength Index (RSI) has continued to rise and become overbought. Similarly, the Average Directional Index (ADX) has increased to 21, indicating that momentum continues.

Therefore, the Chainlink price will continue rising in the coming weeks. More gains will be confirmed if it rises above the neckline at $17.85. If the LINK price climbs toward $30, it will be the highest in 2024. This reflects an 85% surge from the current range.

This would reinforce bullish momentum for Chainlink. Conversely, dropping below the 50-day Weighted Moving Average at $14 would nullify this optimistic outlook. Such a decline could signal a shift back into bearish territory.

Whales Accumulating, Exchange Balances Falling

There are signs whales are accumulating LINK in hopes that its surge will gain momentum. Whales are defined as large investors capable of influencing a coin’s price. In most cases, whale accumulation is followed by higher price movements.

Data shows whales have continued buying LINK in the past few weeks. Whale holdings have jumped by 20% to 2.85 million in the last 90 days. Their holdings have soared from a low of 2.17 million on June 19.

At the same time, the supply of LINK tokens on exchanges has continued falling in the past few weeks. The supply initially surged from 193 million in June to 211 million. This happened after the network unlocked tokens worth over $149 million to Binance.

Santiment data shows that the supply has plunged. It reached a low of 201 million today, its lowest level since June 19. Falling supply balances indicate that investors move more of them to their self-custody wallets. It also signals that LINK holders are no longer selling aggressively.

In line with this, the futures open interest has continued to rise in the past few months. It jumped to a high of $852 million on July 16.

It is the highest level since February 2, much higher than last month’s low of $533 million. Soaring open interest is one of the most notable signs of rising demand for a cryptocurrency.

Partnerships to Boost Chainlink Price Growth

Chainlink is benefiting from the ongoing growth of DeFi and real-world asset (RWA) tokenization. The total value locked in the DeFi industry has surpassed $250 billion, and this growth is expected to accelerate.

Similarly, its network’s total value secured (TVS) has jumped to nearly $50 billion. This gives it a dominance of over 60%. Chainlink leads the RWA sector thanks to its strategic collaborations with global giants like Coinbase, Swift, JPMorgan, and UBS.

These partnerships position Chainlink as a key player in bridging blockchain technology with traditional finance. For example, the company recently partnered with the Blockchain Association to launch the “Tokenized in America” initiative. It also partnered with Pump, one of the top players in the Solana ecosystem. Therefore, Chainlink’s technicals and strong technicals point to more upside in the coming months.