Chainlink Price Set To Rebound As Whale Accumulation Resumes

Chainlink price has plummeted and entered a bear market this month, falling by over 24% from its year-to-date high. This crash could be nearing an end as the LINK price has formed a bullish flag and a cup-and-handle pattern. This indicates that whales are starting to buy.

Chainlink Price Technical Analysis Signals a Rebound is on The Way

The daily timeframe chart shows that the Chainlink price has pulled back over the past few days. It is moving from the year-to-date high of $28 to its current level of $21.

On the positive side, the coin has formed several chart patterns that indicate a strong rebound in the coming weeks. The first notable pattern was the golden cross.

It occurred in July when the 50-day and 200-day Exponential Moving Averages (EMAs) intersected. This pattern often leads to a strong bullish breakout. LINK price has also formed a cup-and-handle pattern, characterized by a rounded bottom and a handle.

This pattern has a depth of 64% and is currently being created with a handle section. The handle section is a key component of the bullish flag pattern formation. This pattern consists of a vertical line and a descending channel. It is now bouncing above the lower side of this flag.

Therefore, the combination of the cup-and-handle, golden cross, and the bullish flag points to an eventual breakout. The price target is estimated by measuring the distance of the cup’s depth from its upper side.

This means that it may rebound to the critical resistance level at $44. It is about 110% above the current level.

Whales Have Started to Buy LINK Tokens

The recent Chainlink price crash coincided with a significant drop in whale holdings. Data compiled by Nansen shows that these investors held 3.53 million LINK tokens on September 1.

Their holdings began to decline and then bottomed out at 2.89 million last week. It is common for a cryptocurrency to drop as whales and sophisticated investors sell their tokens.

On the positive side, as the chart below shows, whales have begun to purchase LINK tokens. This indicated that they anticipate a strong price rebound. They have boosted their tokens to 3.34 million coins.

A key factor influencing the LINK price is the declining number of tokens held on exchanges. This trend suggests reduced selling pressure and growing investor confidence. There are now 266 million LINK tokens on exchanges, down from 273 million earlier this month.

Strategic Reserves & ETF Momentum Could Fuel Chainlink Price Recovery

Meanwhile, the recent decision by the team to launch the Strategic LINK Reserves is bearing fruit. Data on the website shows that the team has now accumulated 371,019 LINK coins. It is currently valued at $7.8 Million. This is notable since the accumulation started in the first week of August.

Chainlink is creating these reserves by spending its on-chain and off-chain fees to buy LINK tokens. Chainlink fees are expected to increase as adoption grows. Major partners, such as JPMorgan and Swift, are driving this trend by utilizing their technology in the RWA sector.

Chainlink crypto demand is expected to surge once the SEC approves the recently filed Grayscale and Bitwise LINK ETFs. The approval is likely to lead to increased demand from American investors.

Recent data reveals robust investor interest in altcoin ETFs. Ethereum, XRP, Solana, and Dogecoin ETFs have seen significant inflows over the past few months.

Chainlink price is stuck in a bear market after plunging by over 20% from its highest point this year. This crash could end soon after it formed a cup-and-handle and a bullish flag pattern on the daily chart.

LINK stands to gain from the steady increase in its reserves. Upcoming approvals for altcoin ETFs could further boost their demand. The expanding real-world asset (RWA) tokenization industry adds another layer of growth potential.