Chainlink (LINK) Price Forms Double-Bottom Pattern as Whales Accumulate Tokens, Pointing to a Potential Rebound

Chainlink (LINK), the biggest oracle provider, bottomed at $20.12 on Friday and rebounded to $22.50 on Sunday, Dec. 22.

Chainlink (LINK) price shows a potential double-bottom formation on the daily chart, hinting at a possible rebound.

Chainlink price analysis reveals a potential double-bottom formation on the daily chart, indicating a possible technical rebound. The LINK token has been showing signs of accumulation by some whales, as nine new wallets withdrew a total of 362,380 coins from Binance in the last two days. These coins are now valued at over $8.19 million.

Chainlink price shows potential double-bottom formation on the daily chart

Chainlink price dropped sharply last week as concerns about the Federal Reserve’s interest rate hike decision sparked a sell-off in the crypto market. However, LINK token has managed to stay above the 50-day moving average on the daily chart.

From the daily chart, the LINK token has found support twice at the $20.12 price level. This formation is known as a double-bottom chart pattern, which occurs when an asset fails to move below a specific price two times. It is considered one of the most bullish reversal patterns in the market.

Chainlink price also formed an inverse hammer pattern on Friday, which is another popular reversal candlestick pattern. A candle with a long lower wick and a small upper body, like an inverted hammer, is a bullish reversal sign.

Chainlink price technical analysis: Chart by TradingView

With the double-bottom formation and the inverse hammer candle, the technical analysis is bullish for Chainlink price. Investors can expect the coin to bounce back in the next few days.

The first key resistance for LINK price is at the 50-day moving average, followed by the 100-day moving average. If the coin manages to break above these moving averages, it will likely continue to rally toward the key psychological level at $30, which is about 35% above the current price.

On the flip side, the bullish view will become invalid if the coin drops below the double-bottom point at $20.12. In this case, the coin may continue to fall toward the next support level at the 200-day moving average.