Chainlink Price Rare Pattern Points to a Rebound as LINK Reserves Jump

Key Insights:

• Chainlink price has formed the bullish cup-and-handle pattern.
• The Strategic LINK Reserves have continued adding assets this year.
• Its strong fundamentals and technicals point to more gains this year.

Chainlink price has dived and moved into a technical correction after falling by 17% from its highest point this year. This plunge, however, could be short-lived as the LINK price has formed a cup-and-handle pattern and has some of the best fundamentals, including the rising reserves.

Strategic LINK Reserves are Rising

One of the top catalysts that may boost the Chainlink price in the coming weeks is that the recently launched strategic reserves are doing well. They have already accumulated 193,076 coins valued at $4.5 million.

Available data shows that these reserves are growing by over 40,000 LINK tokens a week, a trend that may continue in the coming months as the Chainlink ecosystem grows.

Chainlink launched the reserves to create value and boost its price over time. It does that by channeling the fees it generates on-chain and off-chain into the reserves. Buying the token also helps to remove tokens in circulation, reducing the supply.

LINK to Benefit as Whales Buy and Exchange Balances Fall

Chainlink price will also benefit, as on-chain data shows that whales and smart money investors have continued to accumulate it. Nansen data reveals that whales have bought 1.9 million tokens currently worth over $43 million in the last 30 days. This happened as their holdings jumped to 5.17 million, up from 3.83 million.

Whale accumulation is usually a bullish sign because these investors are believed to be more sophisticated and experienced than normal retail traders. Their buying is a sign that they expect the price to continue recovering over time.

The ongoing whale and reserve accumulation has coincided with the ongoing plunge of exchange balances. There are now 268 million tokens on exchanges, down from a high of 280 million in August.

Plunging exchange balances are normally a bullish sign because it provide hints that investors are moving their tokens to their self-custody wallets. In contrast, cryptocurrencies often plunge when many market participants move them to exchanges.

Chainlink Crypto Price to Jump as it Inks More Partnerships

Additionally, Chainlink has partnered with some of the top companies globally. For example, the US Commerce Department published the latest GDP data on its platform.

It has also moved thousands of data points to the network, making them available to developers across all sectors. It was the first time that the US government had used an Oracle provider in such a way.

On Monday, Chainlink unveiled a partnership with Solv Protocol to create a new Secure Exchange Rate feed for SolvBTC on Ethereum. The Chainlink Proof of Reserve will power the new feed.

LINK Price Cup and Handle Pattern Points to a Rebound

The daily timeframe chart shows that the LINK price has rebounded in the past few months, moving from a low of $10.14 in April to a high of $28 in August. It has pulled back slightly and is now at $23.10.

The recent pullback is bullish as the token has formed a cup-and-handle pattern whose upper side is $27.17 and the lower side is $10.15. The handle section of this pattern is now being formed.

Al, the coin formed a golden cross on July 23rd, with the 50-day and 200-day moving averages crossing each other. Therefore, the most likely Chainlink price forecast is bullish, with the first target being the cup’s upper side at $27. The next target will be at $31, the highest level in November last year.

Chainlink price has pulled back in the past few day, moving from a high of $28 to the current $23. The coin still has strong technicals and fundamentals, including the recently applied LINK ETFs, addresses gains, and the real-world asset tokenization (RWA) growth that will boost its performance over time.

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.