Chainlink (LINK) Price Drops 13% in a Turbulent Crypto Market, But Whales Continue to Accumulate

The price of the crypto asset Chainlink (LINK) declined by 13% in three days. It reached $27, down from an annual peak of $30.95.

The price of Chainlink (CRYPTO: LINK) has dropped by 13% over three days, falling to $27 from an annual peak of $30.95.

This correction comes as the broader cryptocurrency market weakens. For instance, Bitcoin's price has slid to $105,000, marking a 3% decrease from its weekly high of $108,000.

According to technical indicators, LINK has broken support at $27.58 and is forming a bearish "triple top" pattern, indicating increased selling pressure.

However, this dip could present a buying opportunity, especially for investors interested in projects with high adoption in DeFi.

Despite the price decline, Chainlink continues to play a significant role in blockchain, evidenced by securing a total value of $41 billion through partnerships with major platforms like AAVE and Compound.

These strong fundamentals place LINK among the most promising projects in the crypto ecosystem.

A crypto whale has increased its accumulation of LINK tokens despite the price drop. Specifically, it added 65,000 units to its portfolio on December 18, amounting to nearly $1.8 million. According to LookOnChain, this transaction brings the whale’s total acquisition to over $17.3 million.

Meanwhile, institutions like World Liberty Financial (led by Donald Trump) have also shown interest in Chainlink. Recently, this decentralized finance platform acquired $2 million worth of LINK tokens to integrate Chainlink's Oracle solutions into its systems.

From a technical perspective, Chainlink shows signs of short-term weakness. Its price is hovering around the Fibonacci retracement level of 23.6%, at $26, while remaining below the median line of Andrew's Pitchfork model.

Additionally, this crypto asset has broken its 50-period moving average, which could indicate a continuation of the decline to $25.

However, some crypto analysts anticipate a potential rebound, based on the following observations:

Chainlink's fundamentals remain strong, with the platform continuing to secure billions of dollars in value and playing a key role in DeFi.

Upstream, data from IntoTheBlock reveals a continuous increase in the number of holders: over 688,000 active addresses in December (compared to a monthly average of 686,000).

Despite a significant correction, Chainlink remains an essential player in cryptocurrency and decentralized finance.