Chainlink price could be on the verge of a strong bullish breakout in the coming weeks as technicals and fundamentals align. LINK token was trading at $22.40 on Friday, a few points below the year-to-date high of $27. 

The daily chart below shows that the LINK price formed a double-bottom pattern at around $11 earlier this year. This is one of the most common chart patterns in technical analysis. 

The coin then jumped and hit the year-to-date high of $27.85. Most recently, Chainlink price has pulled back and reached a low of $20, which was slightly above the 50% Fibonacci Retracement level.

LINK price has now moved to the fourth phase of the Elliot Wave pattern. This phase is normally followed by the fifth one, which is usually the final one in the impulse stage. 

Therefore, the Chainlink price will likely bounce back and initially hit the year-to-date high of $27.85. A move above that level will point to more gains, potentially to the psychological point at $30. 

On the flip side, a move below the support level at $20 will invalidate the bullish forecast.

LINK price chart | Source: TradingView

The first main catalyst that will boost the Chainlink price is that the Securities and Exchange Commission (SEC) will likely approve the recently filed spot LINK ETFs by companies like Grayscale and Bitwise. 

The odds of this approval have jumped recently now that the SEC published the generic listing standards for these funds. Cryptocurrencies with futures trading requirements, be trading on a market with a surveillance sharing agreement, and if another crypto ETF holds at leat 40% of its assets in the same coin. Chainlink meets the first criteria, meaning that its ETF will likely be approved within a short duration. 

The other notable catalyst for the Chainlink price is that the recently launched Strategic LINK Reserves are gaining assets at a quick pace. The network has already added 417,461 coins worth over $9.3 million to these reserve. This is an important figure as the developers have a long-term approach to this. 

Most notably, the network will likely continue growing because of the ongoing demand for its solutions from companies like JPMorgan, ANZ, UBS, Coinbase, Euroclear, and Swift. 

The other notable catalyst for the Chainlink price is that the number of tokens on exchanges continues falling. There are now 262.53 coins on exchanges today, down sharply from 273 million last month. 

Falling tokens on exchanges is a sign that investors are bullish on the coin. That’s because these investors are moving their coins to self-custody and most likely don’t have the intention to sell any time soon. 

Another important metric is that whale investors are accumulating the token. They now hold 3.39 million coins, up from 2.93 million on September 27. 

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