Bullish Cup and Handle Pattern Forms for Chainlink
Despite its recent decline, Chainlink (LINK) is showing highly positive technical signals. These should support its price in the coming weeks. The token has remained above the 50-day exponential moving average, a sign that the bullish trend remains intact.
Additionally, LINK has found solid support at the Murrey Math Lines reversal pivot level, a technical level often followed by a bounce. The token is also trading above the Ichimoku cloud indicator, further confirming the positive momentum.
Most importantly, LINK’s recent price correction is an integral part of a cup and handle pattern formation characteristic of bullish movements. With an upper boundary at $27.17 and a lower boundary at $10.15, this technical pattern suggests a price target of $44, approximately double the current level. Only a drop below the support pivot at $18 would invalidate this outlook.
A LINK ETF? The Rumor Exciting the Market
Chainlink’s fundamental catalysts are also highly promising for the long term. First, data from Nansen shows that the quantity of LINK tokens on exchanges is sharply declining, indicating that investors are not selling. These reserves have dropped from 277 to 270 million LINK.
Furthermore, the number of tokens in recently launched Chainlink reserves is increasing, now reaching 237,014 units valued at $5.3 million. This marks an important milestone in the program aimed at allocating LINK from on-chain and off-chain fees.
Chainlink also benefits from strong partnerships, notably with the US Department of Commerce to integrate macroeconomic data on the blockchain. The company has also formed agreements with giants like Swift and JPMorgan. More recently, a partnership with Aave was announced following the launch of their RWA Horizon platform.
Related articles:
