Chainlink has established a double-bottom pattern, indicating a possible recovery, as evidence shows that certain whales are accumulating the token.

Chainlink (LINK), the leading oracle provider, reached a low of $20.12 on Friday and then climbed to $22.50 by Sunday, December 22. However, the cryptocurrency is still approximately 27% below its peak this month, indicating it is in a bear market.

A potential catalyst for the LINK token’s movement is the accumulation by whales. As reported by LookOnChain, nine new wallets withdrew 362,380 coins from Binance in the past two days, which are now valued at over $8.19 million.

According to Crypto.news last week, another whale acquired 65,000 LINK coins valued at $1.8 million.

These whale purchases occurred just a week after World Liberty Financial (WLFI), a DeFi platform launched by the Trump family, acquired over 78,300 LINK tokens valued at more than $1.7 million. Notably, President-elect Trump and his family predominantly own WLFI tokens.

Chainlink, recognized for its strong fundamentals in the crypto world, stands as the largest oracle in the industry, securing a total value of over $35 billion—surpassing major competitors like Chronicle, Pyth, Edge, and Redstone.

The Chainlink ecosystem is expected to expand as more chains and networks adopt its technology. Justin Sun’s Tron, the latest chain to implement its oracles, has transitioned from WINKLink to Chainlink.

Additionally, Chainlink has forged significant partnerships in the Real World Asset tokenization space with companies such as Coinbase, Emirates NBD, SWIFT, and UBS.

Chainlink price formed a double-bottom pattern

LINK, like many other cryptocurrencies, has experienced a sharp decline in the past few days amid ongoing concerns regarding the Federal Reserve.

The token has remained above the 50-day moving average on the daily chart. Most importantly, it has created a double-bottom chart pattern at $20.12. This pattern forms when an asset fails to drop below a specific price twice, making it one of the most bullish reversal patterns in the market.

LINK has also formed an inverse hammer pattern, a well-known reversal signal. Consequently, the coin is likely to see a rebound in the coming days as investors aim for the key psychological level of $30, about 35% above its current position.

Conversely, the bullish outlook will become invalid if the coin falls below the double-bottom level at $20.12.