Key Insights
- Chainlink price forms a double bottom around $15.00–$15.70, suggesting weakening bearish momentum and potential trend reversal.
- A breakout above the $20 neckline could push LINK toward $25–$26, supported by RSI trendline confirmation.
- On-chain data shows thirty new wallets withdrawing $116.7M in LINK from Binance, signaling growing accumulation by investors.
Chainlink price is showing early signs of a bullish reversal following recent market turbulence. The cryptocurrency appears to be forming a double bottom pattern between the $15.00 and $15.70 range. This development indicates that the previous wave of selling pressure may be easing as buyers begin to stabilize the price around a key support level.
The neckline of this potential reversal pattern lies near the $20.00 mark. A clear move above this level, supported by a Relative Strength Index (RSI) breakout, could confirm renewed bullish momentum. Technical projections suggest that a sustained breakout could drive Chainlink toward an upside target between $25.00 and $26.00.
Background of Market Movement
The cryptocurrency market experienced a sharp sell-off on October 10, when rising trade tensions triggered widespread liquidations. During that period, Chainlink dropped over 20 percent, extending its downtrend below a major descending trendline. Since then, the token has shown resilience as selling volume has gradually decreased, signaling that market sentiment may be shifting.
On-chain analytics have strengthened the technical outlook. Data from Lookonchain revealed that since October 11, thirty new wallets collectively withdrew more than 6.25 million LINK, valued at approximately $116.7 million, from Binance. This movement indicates accumulation by investors moving tokens from exchanges to private wallets, often viewed as a sign of long-term holding.
Market Outlook
The steady withdrawal of LINK tokens from centralized exchanges highlights increasing investor confidence. Moreover, if the price breaks above the neckline resistance, this accumulation could act as strong support for a continued upward trend. Market analysts are observing the $20 level closely, as a decisive breakout may trigger a broader recovery toward the projected $25.00 to $26.00 target zone.
