Chainlink is trading at $21.37, marking a loss of over 6%.
Whale activities highlight that large investors are increasing their holdings in LINK.
Chainlink (LINK), the native cryptocurrency token of the decentralized Oracle network, chose to trade on the downside. LINK has recorded a loss of over 6.10% in the last 24 hours.
In the early hours, Chainlink traded at $23.05. Despite climbing up toward the $25 range, the altcoin has slipped to a low of $21.24. At the time of writing, LINK trades at $21.37.
Furthermore, the market observed a liquidation of $2.83 million worth of LINK during this timespan, according to Coinglass data. In the meantime, the asset’s daily trading volume has reached $803 million.
In addition, on-chain data reveals that a whale has deposited 250K LINK worth $5.37 million to Binance and OKX. Between December 14 and 18, this whale withdrew 595K LINK, valued at approximately $17.31 million from Binance. With the current price of Chainlink, the whale has a loss of around $4.5 million.
As per Santiment, Chainlink has faced a price retracement in the second half of December. However, the whales holding between 1 million and 10 million LINK have accumulated 3.58 million coins, worth $76.9 million over the past 3 days, indicating strong buying interest.
Will Chainlink Bounce Back?
The in-progress price analysis of Chainlink unveils the downside price pattern. If the immediate support at $20 fails to hold, the price could face a downside momentum. If the selling pressure outweighs buying activity, LINK’s price could potentially break below the $18 mark or even lower.
On the other hand, if the current momentum reverses and the uptrend regains strength, the LINK price might rebound and test the resistance at $23.67. Breaking through the crucial resistances at $25.72 and $28.19 could propel further upside targets.
Moreover, LINK’s daily trading frame discloses the short-term 9-day moving average below the long-term 21-day moving average. The daily relative strength index (RSI), at 34.35, indicates negative sentiment and the asset is nearing oversold territory.
LINK’s four-hour technical indicators report strong bearish momentum in the market. The Moving Average Convergence Divergence (MACD) line and signal line are likely positioned below the zero line. This confirms the dominance of selling pressure, and the downtrend might continue.
LINK chart (Source: TradingView)
Besides, the Chaikin Money Flow (CMF) indicator is currently at -0.37, reflecting a negative capital flow. It implies that the sellers dominate the market, possibly pushing the Chainlink price lower. Likewise, the daily trading volume of the asset has spiked by 11.10%.
Disclaimer: The opinion expressed in this article is solely the author’s. It does not represent any investment advice. TheNewsCrypto team encourages all to do their own research before investing.
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