Connect with us
DAPA Banner

Crypto World

Here’s why Chainlink price is a coiled spring poised for a breakout

Published

on

Chainlink price has formed a double bottom pattern on the daily chart.

Chainlink price is forming a major bullish reversal pattern that could ultimately lead to a potential surge to $12 over the coming weeks.

Summary

  • Chainlink price rose to $9.40, up ~13% from monthly lows, as a bullish reversal pattern takes shape.
  • A double bottom formation points to a potential breakout above $10, with a projected upside toward $12.
  • Whale accumulation and declining exchange reserves signal growing long-term confidence and reduced selling pressure.

According to data from crypto.news, Chainlink (LINK) price rallied nearly 8% to $9.40 on Tuesday, locking in gains of nearly 13% from its lowest point over a monthly period. Despite this, the token remains down nearly 25% below from where it started this year.

The 17th largest crypto asset by market cap is showing a highly bullish reversal pattern that suggests the token could be close to a breakout soon.

Advertisement

On the daily chart, Chainlink price appears to be completing a double bottom pattern, which is one of the most popular bullish signs in technical analysis. A breakout from the neckline of such a pattern has historically been followed by strong upside in a related asset for multiple sessions.

Chainlink price has formed a double bottom pattern on the daily chart.
Chainlink price has formed a double bottom pattern on the daily chart — April 14 | Source: crypto.news

For Chainlink, a breakout from the $10 neckline of the pattern formed could push its price to above $12. This level is calculated by adding the height of the double bottom pattern to the neckline itself.

For now, the most immediate resistance sits at $10, which also serves as a key psychological resistance level. On the contrary, a drop below $8 could erode the ongoing bullish momentum and potentially invalidate the current setup.

Momentum indicators such as the MACD and RSI suggest that a recovery could already be underway. Notably, the MACD lines have moved upwards and are close to breaking out of their bearish zone, while the RSI has bounced above neutral thresholds, suggesting bulls are regaining control of the market.

Advertisement

A major catalyst that seems to be supporting Chainlink price has been active accumulation by whales. According to recent reports, whales have added another 1.89 million LINK tokens worth approximately $16.9 million recently, bringing total holdings by these investors to 661.9 million tokens.

What is interesting is that this large-scale purchase came alongside declining LINK reserves on exchanges, a sign that investors are moving their assets into cold storage for long-term holding.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

Advertisement

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

XRP Targets 2026 Highs After Binance Flows Flash Bull Market Signal

Published

on

Cryptocurrencies, Adoption, XRP, Markets, Derivatives, Financial Derivatives, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch

XRP (XRP) has consolidated within a tight price range below $1.40 over the past 20 days, but new data suggests it may be poised for a bullish breakout after a shift in Binance activity signals reduced sell-side pressure. 

Binance’s withdrawal and deposit activity is flashing a setup that mirrors June 2025, when the altcoin embarked on a rally to $3.65.

Cryptocurrencies, Adoption, XRP, Markets, Derivatives, Financial Derivatives, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch
XRP/USDT on the one-day chart. Source: Cointelegraph/TradingView

XRP Binance deposits drop to 2025 lows

Crypto analyst Amr Taha noted a shift in XRP activity on Binance, with transaction flows moving away from deposit-heavy behavior. The seven-day average shows XRP withdrawals rising to 53% while deposits dropped to 46%, returning to the levels last seen in June 2025.

Cryptocurrencies, Adoption, XRP, Markets, Derivatives, Financial Derivatives, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch
Binance daily deposit/withdrawal transactions. Source: CryptoQuant

That prior setup aligned with a 65% XRP rally to all-time highs of $3.65 in July 2025, placing the current shift on traders’ radar.

The falling deposit activity signals fewer coins moving onto exchanges, while rising withdrawals indicate assets leaving exchanges. This reduces immediate sell-side pressure if sustained over multiple trading sessions.

Currently, XRP flow on Binance is no longer dominated by incoming supply. This indicates a change in trader positioning, with fewer participants preparing to sell into the market.

Advertisement

Meanwhile, liquidity has contracted sharply. CryptoQuant data shows XRP’s 30-day liquidity index on Binance dropping to 0.053, the lowest level since 2021. The 30-day trading volume stands at nearly 3.77 billion XRP, marking one of the weakest periods of activity in recent years.

Cryptocurrencies, Adoption, XRP, Markets, Derivatives, Financial Derivatives, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch
XRP Binance liquidity index. Source: CryptoQuant

The price action aligns with this slowdown. XRP trades near $1.38 with limited movement over the past three weeks, consistent with a quieter order book and reduced trader participation. These lower-liquidity phases may coalesce momentum and precede a stronger directional move once activity returns.

Related: Bitcoin’s struggle to build long-lasting uptrend continues: Here’s why

XRP traders position in futures markets

While XRP price consolidates, onchain data shows an aggregated spot cumulative volume delta (CVD) of -$153 million and a futures CVD near -$295 million, pointing to a reduction in aggressive selling.

Cryptocurrencies, Adoption, XRP, Markets, Derivatives, Financial Derivatives, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch
XRP price, aggregated open interest, funding, spot, and futures CVD. Source: velo.chart

The buy-side activity has not expanded, keeping the price movement muted. The funding rates have turned slightly positive at 0.06%, signaling a mild long bias.

Open interest has climbed to nearly $769 million, suggesting fresh positions are entering the market.

Advertisement
Cryptocurrencies, Adoption, XRP, Markets, Derivatives, Financial Derivatives, Binance, Price Analysis, Futures, Market Analysis, Altcoin Watch
XRP/USDT on the one-day chart. Source: Cointelegraph/TradingView

From a technical perspective, a daily close above $1.40 opens the door to $1.60–$1.67. That $1.40 level also aligns with the 50-day moving average, which may flip into support on a bullish breakout.

The liquidation data shows roughly $250–$300 million in cumulative long/short positions at risk within a 10% move in either direction. Compared to larger assets like BTC (BTC) and Ether (ETH), the liquidity is relatively small, suggesting lower trader participation near $1.40.

Related: XRP Ledger taps Boundless for bank-grade privacy on public blockchains