Chainlink price remained in a tight range this week as demand for the coin waned despite its strong fundamentals. LINK token was trading at $13.65, down sharply from the year-to-date high of $27.83. This article explores the top reasons Chainlink could rebound soon.
Reasons Why Chainlink Price May Rebound Soon
There are a few reasons why the Chainlink crypto price may rebound in the coming weeks or months.
First, Chainlink has become one of the most important players in the crypto industry, providing oracle solutions to some of the biggest companies in the decentralized finance (DeFi) industry.
Chainlink provides its price feeds and other services to crypto projects like Aave, Maple Finance, Compound, Spark, and Kamino.
Data compiled by DeFi Llama shows that the network has accumulated a total value secured (TVS) of over $50 billion, giving it a market dominance of 62%. It is much larger than other large oracle networks, such as Chronicle, RedStone, and Pyth Network.
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Chainlink is also a major player in the fastest-growing real-world asset tokenization industry, providing its solutions to companies such as Coinbase, JP Morgan, Galaxy Digital, xStocks, UBS, and BNP Paribas, among others.
It also partners with leading players in the financial services industry, such as DTCC, Euroclear, and SWIFT, which process trillions of dollars a year. All these organizations are using their CCIP and other solutions to move assets.
Meanwhile, there are signs that investors are accumulating the LINK token, leading to a dip in the exchange supply. Whales have boosted their holdings by 144% in the last 30 days to over 2.3 million tokens.
Consequently, the amount of LINK tokens in exchanges has dropped by 14% in the last 30 days to 219 million. Falling exchange balances are a bullish sign, as they indicate that investors are buying and moving their tokens to self-custody.
Chainlink has also become a whale in itself, with the developers boosting the amount of LINK tokens in the Strategic LINK Reserves to over 1 million tokens in less than four months.
Chainlink Price Technical Analysis
The weekly timeframe chart shows that the LINK price has been in a strong downward trend in the past few months, moving from a high of $27.83 on August 18 to the current $13.67.
A closer look shows that the LINK price has formed a slanted triple-bottom pattern and a neckline at $30. This pattern often leads to a strong bullish reversal, provided it remains above the triple-bottom level. In this case, the token will likely rebound and move to the psychological $20 level.
However, a move below the support will suggest that the pattern is actually a head-and-shoulders, not a triple-bottom. As such, that move would push its price much lower, potentially to $10 and below.
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