Chainlink Eyes $52 Target As Double Bottom Pattern Fuels Bullish Outlook

Key Insights

Chainlink forms a double bottom pattern, signaling strong support and potential for a rally toward its previous record high of $52.

LINK Reserve increases holdings by $1M, adding to buying pressure that could support sustained upward movement in the market.

Analysts see $36 as a key resistance level, with a breakout potentially unlocking significant gains toward all-time highs.

Chainlink traded at $22.37 on April 15 after a 5.5% decline in the last 24 hours. Despite the drop, analysts maintain a positive outlook, pointing to bullish chart patterns.

Analyst CryptoGoos identified a double bottom pattern on the LINK price chart. The formation, shaped like the letter W, reflects strong buying interest at a firm support level. This often signals the start of an upward trend, with the next target potentially reaching $52, which is the token’s previous record high.

In addition to the double bottom, CryptoGoos noted the emergence of an inverse head and shoulders pattern. This formation often precedes bullish price action, suggesting that buyers are gaining control. However, the analyst emphasized that breaking past the $36 resistance level is necessary to confirm the uptrend.

Resistance at $36 Key for Further Gains

The $36 level was last reached in 2022. If Chainlink surpasses this point and successfully retests it as support, analysts believe the path toward $52 would become more likely. This breakout could confirm sustained bullish momentum.

Source: X

Recent market data shows that the Chainlink Reserve purchased 44,109 LINK tokens valued at over $1 million. This acquisition adds to its total holdings of more than 109,662 LINK, worth approximately $2.6 million.

Consecutive Purchases Signal Confidence

The latest purchase follows an earlier acquisition of $1.4 million worth of LINK tokens by the same entity earlier this week. This consistent accumulation introduces additional buying pressure beyond retail market activity.

The combination of bullish chart patterns and steady institutional accumulation has reinforced confidence in Chainlink’s upward potential. Analysts view the convergence of these technical and on-chain factors as a positive sign for the token’s market performance.