Chainlink Price Points to a Rebound Amid Whale Buying

Chainlink price retreated to $17.22, down by 15% from this month’s high of $20.27. LINK’s strong technicals and the ongoing whale transactions and exchange outflows point to an eventual rebound in the coming days or weeks.

Chainlink Price Has Supportive Technicals

LINK price has crashed into a technical correction after plunging by 15% from this month’s highest point. However, the token still has encouraging technicals that could trigger a double-digit surge soon.

It formed a double-bottom pattern at $10.95, its lowest level in April and June. This pattern consists of two lower swings and a neckline, which, in this case, is located at $17.86, its highest level in May.

The profit target in a double-bottom pattern is estimated by first measuring its height and then adding the figure to the neckline. In this case, the height is $6.9 ($17.86 minus $10.95).

Adding the same figure to the neckline gives the price target of $24.7, which is about 41.3% above the current level. This bullish breakout will be confirmed if it moves above $20.27, its highest level this month.

Chainlink price has made other bullish patterns. For example, it formed the positive golden cross pattern on July 31st as the 50-day Weighted Moving Average (WMA) rose above the 200-day MA. This crossover often leads to more gains over time.

The other bullish catalyst is that it has dropped and retested the neckline of the double-bottom pattern at $17.86. A break-and-retest often confirms a breakout. Chainlink has also found support at the 61.8% Fibonacci Retracement level at $16.83.

Whales Continue to Accumulate LINK Tokens

Meanwhile, there are signs that whales have continued to accumulate LINK tokens this month. Whales, who are defined as large individual or institutional investors, now hold over 4.05 million LINK tokens, a sign that they believe it will rebound.

Whale holdings have jumped by 21% in the last 30 days and by over 32% in the last six months.

The same has happened among the so-called smart money investors or market participants that have a long record of executing profitable trades. These investors hold about 60,000 LINK tokens, up from this month’s low of 55,000.

Smart money and whale accumulation is usually a signs that these investors believe that a token is cheap and that it will continue doing well.

LINK Open Interest and Exchange Supply

The other bullish catalyst for the Chainlink price is that the volume in exchanges has decreased this month. There are now 276 million tokens in centralized exchanges, down from 282 million on the same day last month.

Falling exchange balances are a bullish sign because they signal that investors are moving their tokens from exchanges to self-custody, a sign that they expect the price to stabilize.

Further data shows that the futures open interest has remained steady in the past few weeks. The interest is over $904 million, much higher than the June low of $504 million.

Steady futures open interest when a token is falling often leads to more gains over time.

The other bullish catalyst for the LINK price is the ongoing growth of its total value secured (TVS). It has jumped to $55 billion, much higher than Chronicle, the second-biggest oracle network. Chainlink has a market dominance of 61.8% and is a top player in the real-world asset tokenization data.

Summary

Chainlink price has pulled back in the past few days as the crypto market has crashed. However, this pullback may be a good entry point as the token has strong fundamentals and technicals.

It has formed a giant double-bottom pattern, a break-and-retest, and a golden cross. Fundamentally, it continues to gain market share in the oracle industry, where its market dominance has jumped to nearly 62%.