Chainlink (LINK) Price Prediction: The third wave of Elliott Wave has started aiming for $25.5.

The leading Oracle Machine Chainlink (LINK) has shown strong performance with five consecutive bullish days over the past week, with the price skyrocketing to $22.46, rebounding over 113% from this year's low, and its market capitalization surpassing $14 billion. This strong upward momentum is driven by three core factors: Whale addresses' holdings increased by 21% month-on-month, the reserves on exchanges sharply decreased to 273 million coins, and the protocol initiated on-chain income to buy back LINK tokens. The technical analysis confirms a double bottom breakout, and Elliott Wave analysis indicates a potential entry into an explosive third wave, with long positions targeting the Fibonacci resistance level of $25.51.

Whales significantly increase holdings + exchange depletion, strong on-chain fundamentals support the rise

(Source: Nansen)

• Whales Strongly Accumulate: On-chain data monitoring shows that LINK whale addresses (top 1% by holdings) have been continuously buying, with total holdings reaching 4.53 million coins. In the past 30 days, holdings surged by 21%, and over the last 90 days, there was an even larger increase of 41%, indicating strong bullish expectations from large funds.
• Exchange reserves shrink sharply: With whales accumulating, the LINK reserves of major exchanges continue to flow out, decreasing sharply from last month's peak of 281 million coins to the current 273 million coins. The tightening supply situation creates favorable conditions for price rise.
• Protocol Launches Strategic Buyback: The Chainlink development team announces a significant upgrade to its token economics - it will utilize on-chain Oracle Machine service revenue and enterprise-level solution revenue to continuously buy back LINK tokens in the secondary market. This long-term buyback mechanism is expected to gradually reduce circulation and create sustained buying support.

The leader of the Oracle Machine ecosystem expands, solidifying its core position in RWA and cross-chain As the largest Oracle Machine network in the crypto industry, Chainlink's role as the infrastructure connecting off-chain data and on-chain smart contracts is becoming increasingly critical. Recent ecological progress has been significant:

• Traditional Financial Data Access: Successfully launched real-time data streams for US stocks and ETFs, bridging traditional financial markets with blockchain applications.
• Core Infrastructure for RWA (Real World Asset) Tokenization: Its Cross-Chain Interoperability Protocol (CCIP) has become the preferred data and communication layer for multi-chain asset Tokenization projects, occupying a commanding position in the trillion-dollar RWA sector.

Technical Analysis: Double Bottom Breakout Confirmed, Elliott Wave Three Initiated Targeting $25.5

(Source: TradingView) The LINK daily chart presents a strong technical structure:

1. Classic double bottom pattern completed: A double bottom support was formed at $10.95 in April and June this year, laying the foundation for a reversal.
2. Neckline Strong Breakthrough: The price effectively breaks through the double bottom neckline resistance level of 17.85 USD (the swing high on May 12), confirming the bottom formation.
3. Elliott Wave Third Wave Initiation: The current movement clearly exhibits the structure of the first two waves of the Elliott Wave Theory, and is likely in the early stages of the third wave, which has the strongest momentum and the longest duration.
4. Clear upward target: Based on wave theory measurements and Fibonacci tools, the next key resistance level is at the 23.6% retracement level of $25.51, which presents an upward potential of about 15% from the current price.
5. Bull-Bear Watershed: In the short term, it is crucial to closely monitor the support level at $20. If the daily closing price falls below this level, the current bullish technical structure will become invalid.

Conclusion: The recent surge of Chainlink is by no means an isolated event. Three major on-chain fundamental factors have formed a resonance: Whale accumulation, exchange depletion, and protocol buybacks. Coupled with the positive ecological benefits of traditional financial data integration and the expansion of the RWA track, these have collectively driven LINK to break through key technical levels. If the Elliott Wave's third wave unfolds as expected, the target of $25.5 is within reach. Traders should currently focus on the $20 support line; if it holds, the upward trend will continue; if it breaks, one must be wary of deep pullback risks.