On Boxing Day, the price of Chainlink (LINK) experienced a notable decline, even as significant investors, commonly referred to as “whales,” increased their holdings in the leading oracle project within the cryptocurrency industry.
The price of Chainlink (LINK) experienced a notable decline on Boxing Day, even as large investors, known as “whales,” continued to increase their holdings in the leading oracle project within the cryptocurrency industry.
Chainlink's price dipped to $22.90 on Monday, which marked a 12.45% decrease from its peak level earlier in the week and a 26% drop from its year-to-date high. This downward trend was observed amid a broader downturn in the cryptocurrency market, with Bitcoin falling to $95,000 and the overall market capitalization of all digital coins dropping to $3.3 trillion.
However, data revealed persistent accumulation of LINK tokens by large investors. According to data from Etherscan, one whale moved coins valued at $1 million from Coinbase to a private wallet on Monday. Another whale executed a similar transaction to the tune of $1.3 million, while a third transferred coins amounting to $566,000 from Kraken.
Moreover, Donald Trump's World Liberty Financial was reported to have acquired over $1.8 million worth of Chainlink tokens. This contributed to a negative net flow of Chainlink tokens to exchanges, a trend that is indicative of ongoing accumulation. The net flow reached a low of minus 677,000 tokens, which was the lowest level observed in weeks.
Chainlink plays a vital role in the cryptocurrency ecosystem, providing oracle solutions to major players in the decentralized finance (DeFi) sector, such as AAVE and Compound. Additionally, Chainlink has developed the Cross-Chain Token (CCT) standard, which enhances token transfers across different blockchains through the Cross-Chain Interoperability Protocol. This standard is now utilized by cryptocurrencies like Shiba Inu, Turbo, and Neiro.
Presently, Chainlink's price pattern is forming a head and shoulders configuration, a common reversal indicator, with a neckline situated at $20.36. This month, the peak was $30.93, forming the head, while the shoulder rests at approximately $26. The coin has also dipped below the 50-period Exponential Moving Average, which is now trailing downward. Hence, the primary tendency for LINK is bearish, with $20.36 being the next critical level to monitor. If the price dips below this, it might further decline to $13.3, representing a 41% decrease from the present level. However, a bullish reversal would be signaled if the price surpasses the right shoulder at $26.
