Chainlink (LINK), the largest provider of oracle services, experienced a low point of $20.12 on Friday and subsequently rebounded to $22.50 on Sunday, December 22nd. However, the coin is still approximately 27% below its highest point this month, indicating that it is in a bear market.
One factor that could potentially influence the LINK token is the accumulation of it by whales. According to LookOnChain, nine new wallets withdrew 362,380 coins from the cryptocurrency exchange Binance in the past two days. These coins are now valued at over $8.19 million.
Last week, Crypto.news reported that another whale accumulated 65,000 LINK coins worth $1.8 million.
These whales purchased Chainlink one week after World Liberty Financial (WLFI), a decentralized finance platform launched by the Trump family, acquired over 78,300 LINK tokens valued at over $1.7 million. It is worth noting that President-elect Trump and his family primarily own WLFI tokens.
Chainlink, renowned in the cryptocurrency industry for its fundamental qualities, is the largest oracle in the sector with a total secured value of over $35 billion. This figure surpasses its main competitors such as Chronicle, Pyth, Edge, and Redstone.
As more chains and networks adopt its technology, Chainlink’s ecosystem is expected to expand. Justin Sun’s Tron, the most recent chain to utilize Chainlink’s oracles, has switched from WINKLink to Chainlink.
Chainlink has also established significant partnerships in the Real World Asset tokenization industry, collaborating with companies such as Coinbase, Emirates NBD, SWIFT, and UBS.
In terms of price, Chainlink has formed a double-bottom pattern. Similar to other cryptocurrencies, LINK experienced a significant decline in the past few days due to concerns surrounding the Federal Reserve.
On the daily chart, the token has remained above the 50-day moving average. Moreover, it has formed a double-bottom chart pattern at $20.12. This pattern occurs when an asset fails to drop below a specific price point twice, making it one of the most bullish reversal patterns in the market.
Additionally, LINK has also formed an inverse hammer pattern, a popular sign of reversal. Therefore, it is likely that the coin will rebound in the coming days as investors target the key psychological level of $30, which is approximately 35% higher than the current level.
If the coin falls below the double-bottom point at $20.12, however, the bullish outlook will become invalid.