Chainlink price could have established a strong bottom and aims for a 15% upswing

Chainlink price has been trending downwards for the past week, but seems to be forming a potential bottom and could see a significant upswing. 

Chainlink price has defended key support level

Chainlink has formed a descending parallel channel on the 4-hour chart which can be drawn by connecting the lower highs and lower lows with two parallel trend lines. 

LINK/USD 4-hour chart

A breakout above the middle trend line of the pattern at $34.4 could quickly drive Chainlink price toward the upper boundary at $39.5. The number of whales continues to increase which is a good sign for the long term.

LINK Supply Distribution

Since March 9, 2021, the number of holders with 100,000 and 1,000,000 LINK has increased from 243 to 263. Additionally, the MVRV (30d) ratio is low and below 0% at the time of writing. 

LINK MVRV (30d) ratio

However, Chainlink continues trading inside a descending parallel channel which could see a breakdown if the key support level at $29.7 fails to hold.

LINK/USD 4-hour chart

A breakdown below this key support trend line at $29.7 will drive Chainlink price to $25 and as low as $19.7.