Chainlink (LINK) Price Retreated on Boxing Day Even as Whales Accumulated the Biggest Oracle Project in the Crypto Industry

Chainlink (LINK) retreated to $22.90, down by 12.45% from its highest level this week and by 26% from the year-to-date high.

Cryptocurrency prices crashed on Boxing Day as Bitcoin dropped to $95,000 and the market cap of all coins fell to $3.3 trillion.

However, as we have covered before, there are signs that Chainlink whales have continued accumulating the LINK token.

Etherscan data shows that one whale moved coins valued at $1 million to a private wallet from Coinbase. Another investor made a similar transaction valued at $1.3 million, while another moved coins valued at $566,000 from Kraken.

These LINK movements follow Donald Trump's World Liberty Financial accumulating over $1.8 million in Chainlink tokens.

Moreover, further data reveals that the netflow of Chainlink tokens to exchanges has turned negative, indicating more accumulation. The netflow moved to minus 677,000 tokens, which is the lowest level in weeks.

Chainlink has emerged as a pivotal player within the cryptocurrency domain, offering its oracle solutions to major players within the decentralized finance industry.

These include AAVE and Compound.

Additionally, Chainlink spearheaded the Cross-Chain Token standard, which facilitates token transfers across blockchains through the Cross-Chain Interoperability Protocol. Notably, leading cryptocurrencies such as Shiba Inu, Turbo, and Neiro now utilize CCT.

Chainlink price forms H&S pattern

The four-hour chart indicates that the LINK price peaked at $30.93 this month and then declined to the current $22.7.

It is now gradually forming a head and shoulders pattern, a well-known reversal indicator, with its neckline at $20.36. The head is this month's high at $30.93, while the shoulder is around $26.

Chainlink price has also slipped below the 50-period Exponential Moving Average, which is sloping down.

Hence, the coin faces a bearish path of least resistance, with the next key support level to watch being $20.36. A move below this level could lead to a drop to $13.3, which is 41% below the current price. However, the bearish scenario will be invalidated if it manages to close above the right shoulder at $26.