Chainlink (LINK), the native token of the decentralized oracle network, has recently experienced a price pullback of over 6%. Despite this downturn, whale activity in the market shows a different trend: large investors are actively increasing their holdings in LINK. Here’s a closer look at the current developments surrounding Chainlink:
Current Price Action of Chainlink
Current Price: $21.37 (down 6.1% in the last 24 hours)
Price Trend:
In the early hours, Chainlink was trading at $23.05.
It reached a high near the $25 mark but later slipped to a low of $21.24.
At the time of writing, Chainlink is trading at $21.37.
Market Liquidation: $2.83 million worth of LINK was liquidated in the past 24 hours, according to Coinglass data.
Daily Trading Volume: $803 million.
Whale Activity on the Rise
Despite the price decline, whale activities have been notably bullish:
Whale Transactions:
A whale moved 250,000 LINK, worth about $5.37 million, to Binance and OKX exchanges.
Between December 14 and December 18, the same whale withdrew 595,000 LINK (approximately $17.31 million) from Binance.
With the current price of Chainlink, this whale is sitting on a loss of around $4.5 million.
Accumulation Trend:
According to Santiment data, large holders (1 million to 10 million LINK) have acquired 3.58 million LINK, valued at $76.9 million in the past 3 days.
This suggests strong buying interest from whale investors despite the recent price pullback.
Will Chainlink Price Recover?
Chainlink’s price is showing a downside price pattern in the short term. Here are key levels to watch for:
Potential Downside:
If selling pressure exceeds buying activity, LINK could fall below $18.
Potential Upside:
If the momentum reverses and buying activity intensifies, LINK could test resistance at $23.67.
A break above $25.72 and $28.19 could lead to further upward movement.
Technical Indicators Suggest Bearish Sentiment
Short-term Moving Averages: The 9-day moving average is currently below the 21-day moving average, indicating bearish momentum.
Relative Strength Index (RSI): The RSI stands at 34.35, indicating negative sentiment and signaling that LINK is approaching oversold territory.
MACD Indicators: On the 4-hour chart, the Moving Average Convergence Divergence (MACD) line and the signal line are positioned below the zero line, confirming that selling pressure dominates the market.
Chaikin Money Flow (CMF): Currently at -0.37, the CMF shows a negative capital flow, suggesting that sellers have the upper hand and may push prices lower.
Conclusion
Chainlink (LINK) faces a challenging price environment in the short term, with technical indicators showing bearish momentum. However, the increased accumulation by large investors suggests that whales remain optimistic about the long-term potential of Chainlink. Traders should watch key support and resistance levels, as well as any shifts in whale activity, to gauge whether LINK can stage a recovery or continue its downward trend.
Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Always perform your own research before making any investment decisions.
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