The Chainlink price has pulled back and entered a correction over the past two months. LINK bottomed at $20, down by 22% from its highest level this year, but two crucial chart patterns point to a strong bullish breakout in the near term.
Chainlink Price Technical Analysis Points to a Rebound
The daily chart shows that the Chainlink price may be poised to surge in the coming weeks.
The ongoing pullback is part of a highly positive bullish flag pattern, which consists of a vertical line and a descending channel. In most cases, this pattern leads to a strong bullish breakout.
The channel is also part of the handle section of the cup-and-handle pattern, which is one of the most common continuation signs. This pattern has a depth of about 63%.
As the chart shows, measuring the same distance from the cup’s upper side yields a Chainlink price target of $45, which is more than double the current level. This forecast will become confirmed if it moves above the upper side of the cup at $27.
Top Catalysts for the LINK Price
There are a few bullish catalysts for the Chainlink price. First, the on-chain data indicate that whale investors have resumed buying the coin. They now hold 3.70 million coins, up from 3.41 million on September 17. Increased whale buying is a sign that they expect the price to keep rising.
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Second, the data indicate that the number of Chainlink coins on exchanges has been in a strong downward trend over the past few months. There are now 266 million coins. In exchanges, it has gone down from 272 million a few weeks ago. Falling exchange balances are a bullish sign as they signal that investors are holding their coins in self-custody.
Third, the recently launched Strategic LINK Reserves are growing gradually. Data on the website shows that these reserves have grown from zero in August to 323,116 today. These coins are now valued at over $7 million, a figure that will likely continue growing over time.
Fourth, the Chainlink price is expected to benefit from the potential approval of several spot LINK ETFs that have been filed this month. As we have seen with the several launched ETFs, there is a strong demand for these funds on Wall Street. For example, the recently launched XRPR ETF has already gained over $35 million in just 5 trading days.
Most importantly, Chainlink continues to gain market share in key industries, such as decentralized finance and real-world asset tokenization, where its solutions, including the CCIP, hold a leading market share.
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