Chainlink price forms bullish double bottom, eyes breakout toward $12
Summary
Chainlink has climbed to $9.40, up ~13% from monthly lows, as a bullish reversal pattern emerges.
A double bottom setup signals a potential breakout above $10, with upside targeting $12.
Whale accumulation and falling exchange reserves point to strengthening long-term confidence.
Chainlink is showing signs of a potential trend reversal, with price action forming a classic bullish pattern that could pave the way for further gains in the coming weeks.
The token climbed nearly 8% on Tuesday to $9.40, marking a recovery of around 13% from its recent monthly lows. Despite the rebound, LINK still trades roughly 25% below its level at the start of the year, leaving room for further upside if momentum continues.
Double bottom signals breakout potential
On the daily chart, Chainlink appears to be forming a double bottom — a widely recognized bullish reversal pattern. This setup typically indicates that sellers have exhausted their pressure, allowing buyers to regain control.
A confirmed breakout above the key $10 neckline could trigger a strong rally, with the pattern projecting a move toward the $12 level. This target is derived by measuring the height of the formation and adding it to the breakout point.
Key levels to watch
The $10 mark remains the immediate resistance and a crucial psychological barrier. A sustained move above this level would validate the bullish structure.
On the downside, a drop below $8 would weaken the setup and potentially invalidate the reversal pattern.
Momentum and accumulation support the move
Technical indicators are beginning to align with the bullish outlook. The MACD is trending upward and nearing a breakout from bearish territory, while the RSI has moved above neutral levels — both suggesting improving momentum.
At the same time, on-chain data highlights strong accumulation by large holders. Whales have recently added nearly 1.9 million LINK tokens, pushing total holdings to over 661 million.
This accumulation coincides with declining exchange reserves, indicating that investors are moving tokens into long-term storage — a signal of reduced selling pressure and growing confidence.
Bottom line:
With a bullish chart pattern, improving momentum, and strong whale accumulation, Chainlink appears to be coiling for a potential breakout — with $10 as the trigger and $12 as the next major target.
