Chainlink price sees a 35% increase as the whales pile up

Chainlink price appears to be shaping a bullish reversal setup as whales rally the token near a key resistance level. This setup could potentially spark a rally to $24 or higher in the coming days.

According to data from crypto.news, Chainlink (LINK) is down 7.5% over the past week and is down about 25% from its October peak. Currently, the token is trading around $17.74, but it is down about 36% from its year-to-date high when viewed over a broader time frame.

Still, despite the recent pullback, market sentiment around Chainlink began to shift positively on October 21, fueled by a series of bullish developments that have put the token back in the spotlight.

In an October 20 X afterthe Chainlink team emphasized that its oracle services remained fully operational during the widespread Amazon Web Services (AWS) outage observed on Monday that disrupted large parts of the internet. This included major trading platforms such as Coinbase and Robinhood, both of which rely heavily on centralized cloud infrastructure.

The project’s resilience has reignited interest in Chainlink as it has successfully demonstrated the reliability and robustness of decentralized systems compared to centralized counterparts, increasing demand for its token.

Chainlink is a leading provider of decentralized oracle services, and its network of node operators, backed by cryptographic guarantees and a reputation-based incentive model, has delivered a level of reliability that many other oracle solutions have struggled to match.

As such, Chainlink has become the go-to oracle provider for systems where data integrity is critical.

In the recently released Q3 reportChainlink Labs highlighted several key partnerships, including collaborations with interbank messaging giant Swift, US clearinghouse DTCC and its European counterpart Euroclear. The report also mentioned a pilot project with the US Department of Commerce aimed at bringing government data on-chain.

Chainlink also used the update to shed light on its growing vision of moving from a pure oracle solution to a full-stack infrastructure platform that powers tokenized assets and real-world applications.

In the meantime, facts from DeFiLlama shows that Chainlink continues to dominate the oracle landscape, securing a total value of over $92.58 billion, approximately 68% of the entire market. Its closest rival, Chronicle, lags far behind with $10.5 billion in TVS.

A big upcoming development for Chainlink that has also increased the token’s visibility is the inclusion of Chainlink co-founder Sergey Nazarov in the Federal Reserve’s Conference on Payments Innovation, scheduled for October 21. Alongside representatives from Paxos, Circle and Coinbase, Nazarov is expected to speak about the role of decentralized technologies in building more secure and transparent payment systems.

Such developments have attracted the attention of retailers and whalers alike, many of whom appear to be positioning themselves early in anticipation of further growth and long-term potential for the project.

In support of this, data from Santiment shows that whale portfolios holding between 100,000 and 100 million LINK have steadily increased their holdings over the past three days. This accumulation trend is further reinforced by data from Nansen, which shows a notable outflow of foreign exchange.

Specifically, LINK’s balance on centralized exchanges fell 3.8% over the past week, bringing its total to 269.6 million tokens, a sign that investors may place their assets in-house, which is typically seen as a bullish signal.

On the daily chart, Chainlink price appears to have formed a double bottom pattern, a structure that is often seen as a bullish reversal. This indicates that recent selling pressure could ease as buyers step in to defend a key support zone.

The immediate resistance to watch is near $20.24, which marks the neckline of this potential reversal formation. Interestingly, this level also corresponds to the 50% Fibonacci retracement zone, further increasing its importance.

If LINK manages to break above this neckline while the RSI also breaks through its descending trendline resistance, it would likely add strong confirmation to the bullish setup. At the time of writing, the MACD lines were trending upwards, indicating that momentum is gradually shifting in favor of the bulls.

A confirmed breakout of this double bottom pattern could open the doors for a rally towards $24, which is derived by projecting the depth of the pattern above the neckline level. The target is 35% above the current price level.

However, if LINK fails to hold above support and falls below $16.47, a level corresponding to the 38.2 percent Fibonacci retracement, the bullish structure would become invalid, potentially exposing the token to further downside risk.