Chainlink (LINK) is building a textbook bullish reversal pattern that could propel its price to $12 in the coming weeks. According to crypto.news, LINK traded at $9.40 on Tuesday, up about 13% from its monthly low, though still down roughly 25% year-to-date.
Double Bottom Pattern: $10 Neckline in Focus
The daily chart shows Chainlink forming two distinct troughs near the $8 support zone, followed by a rebound that has lifted the token to its current level. This double bottom structure has a neckline at $10, a key psychological resistance. In technical analysis, a breakout above the neckline typically triggers a price move equal to the pattern's height—approximately $2. Applying that projection yields a target of $12. However, if LINK falls back below $8, the bullish setup would be invalidated.
Momentum Indicators Turn Bullish
Momentum tools support the recovery narrative. The MACD lines are converging and nearing a bullish crossover, while the RSI has climbed above the neutral 50 level, signaling that buyers are regaining control. These readings align with the pattern-based outlook.
Whale Accumulation and Declining Exchange Reserves
On-chain data adds weight to the bullish case. Whales have recently added 1.89 million LINK (worth about $16.9 million) to their holdings, bringing total whale positions to 661.9 million tokens. At the same time, LINK reserves on centralized exchanges have been shrinking, indicating that investors are moving assets to cold storage for the long haul. This “buy-and-withdraw” behavior reduces available supply and selling pressure, a historically constructive signal for price appreciation.
The immediate hurdle remains $10. A decisive break above that level could open the path to $12, whereas rejection may keep Chainlink range-bound between $8 and $10 for now.