Chainlink price is forming a bullish reversal pattern, with a potential upside target near $25 as onchain data suggests accumulation by new wallets.
Summary
- Chainlink price may have formed a double bottom between $15.00–$15.70, indicating waning selling pressure.
- A move above the $20 neckline, especially with an RSI breakout, could trigger a measured rally toward $25–$26.
- Since October 10, 30 new wallets have withdrawn over 6.25M LINK from Binance, adding support for the bullish case.
Chainlink (LINK) price remains in a medium-term downtrend, with the price having recently extended its move beneath the descending trendline following the October 10 sell-off, when the market faced widespread liquidations amid rising trade tensions. On that day, LINK plunged over 20%.
However, there are emerging signs that bearish momentum may be waning. Chainlink price appears to have formed a potential double bottom in the $15.00–$15.70 region — with the first low established during the October 10 crash and the second developing after a brief recovery and subsequent pullback. This pattern suggests that selling pressure is subsiding as buyers begin to defend a key support level.
The neckline of this potential reversal pattern lies around the $20.00 mark, which, if broken, would activate a measured move target near $25.00–$26.00. If a breakout above the neckline coincides with an RSI break through its own descending trendline resistance, it would significantly strengthen the bullish case.
New wallets stack Chainlink
Adding further weight to cautiously bullish technicals, on-chain data shows significant accumulation by new wallets. According to Lookonchain, since October 11, 30 new wallets have withdrawn a total of 6,256,893 LINK ($116.7M) from Binance.
This activity suggests that investors are moving large amounts into private wallets for holding rather than active trading. Such accumulation could provide additional support if Chainlink price approaches the $20 neckline, reinforcing the potential for a sustained rally toward the $25–$26 target.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
