Top 4 Reasons Why Chainlink Price is Ripe for a 45% Surge

Chainlink price has not been left behind in the ongoing crypto market crash as it plunged by over 35% from its highest level in August. LINK was trading at $17.76 today, Oct. 24, but several catalysts point to more gains in the coming weeks.

Strategic LINK Reserves Have Hit $10 Million

One of the main catalysts for the Chainlink price is the recently launched Strategic LINK Reserves, which were unveiled in the first week of August.

Chainlink’s goal is to utilize all its on-chain and off-chain revenue to accumulate LINK tokens, which it will hold for an extended period. The goal is to capitalize on the potential Chainlink price rally and also enhance its tokenomics.

Data on its website shows the developers bought 63,480 LINK tokens this week, bringing its total holdings to 585,641. At the current price, these tokens are worth about $10.4 million.

Therefore, if this trend continues, the network is likely to have over $100 million in reserves within the next 12 months, depending on the performance of LINK.

Chainlink Price Has Formed an Inverse Head-and-Shoulders Pattern

The other top reason why the LINK price may rebound soon is that it has formed a major bullish pattern on the four-hour chart.

It has formed the inverse head-and-shoulders pattern, which often leads to more gains over time. The head of this pattern is at $15.63, while the neckline is slanted, with its upper swing being the highest on October 13 and 20. This pattern often leads to a strong bullish breakout.

At the same time, the coin has formed a bullish divergence pattern, which occurs when top oscillators are moving upwards while the asset remains in a downward trend. The True Strength Index (TSI) has shifted from a value of minus 46 on October 11 to the neutral point.

Similarly, the Relative Strength Index (RSI) has continued to rise and is now slightly above 50. Chainlink price has also moved above the 25-period Exponential Moving Average (EMA).

Therefore, the token will likely continue rising as bulls target the important resistance level at $25, its highest level on September 13, which is about 42^ above the current level.

The bullish LINK prediction will become invalid if it drops below the right shoulder section at $16.

Whales are Accumulating as Exchange Reserves Fall

The other bullish catalyst for the LINK price is that whales have continued to accumulate the token. One estimate by Nansen shows that whales have been buying it in the past few weeks.

Whale investors now hold over 2.96 million LINK tokens, currently valued at over $52 million. In most cases, whale buying is one of the top catalysts for a token because of their experience in trading and investing.

The ongoing whale buying has contributed to the deep crash of exchange balances. There are now 263 million token on exchanges, down from 284 million in September. This means that 21 million tokens, worth $357 million, have left exchanges, indicating that investors are buying rather than selling.

Chainlink Ecosystem Growth and ETF Approvals

Meanwhile, Chainlink’s ecosystem is growing, as evidenced by the recent partnerships. The network was recently by the US government as the oracle platform for moving data on-chain.

It has also partnered with companies like S&P Global, the world’s largest rating agency, which will utilize its technology to publish its Stablecoin Stability Assessments (SSA).

Chainlink is also utilized by prominent companies such as Swift, JPMorgan, Coinbase, and Treehouse, among many others. This growth will help to generate more money, which it will use to boost its strategic reserves.

The Securities and Exchange Commission is also considering the Grayscale and Bitwise LINK ETFs. Based on the SEC’s statements, there is a possibility that it will approve these funds, which is expected to lead to increased demand in the coming months.