As a seasoned analyst with years of experience navigating the volatile cryptocurrency market, I find myself intrigued by the current state of Chainlink (LINK). The price drop of 5.7% today, bringing it down to $21.36, is concerning but not entirely unexpected amidst the broader market correction.
The value of Chainlink is experiencing robust selling activity, causing it to decrease by 5.7% today within a broader market adjustment. After being denied at $30, LINK has fallen 27%, reaching significant support areas around $22. However, large Chainlink holders (whales) have been actively buying during these price dips, indicating optimism among long-term investors.
Where is Chainlink Price Moving Next?
Today, Chainlink’s price has experienced notable selling pressure, resulting in a 5.7% decrease over the past 24 hours, placing it at $21.36 with a market capitalization of approximately $13.63 billion. According to data from Coinglass, there’s been a 12% decline in LINK open interest, currently standing at around $551 million. Furthermore, the past day has seen an increase in liquidations, reaching $3.02 million, with $2.83 million of that being long liquidation positions.
Crypto expert Solberg Invest has pointed out a possible head-and-shoulders pattern emerging on Chainlink’s (LINK) graph, indicating a potential decrease in price. If Chainlink’s price breaks through the pattern’s neckline, the token may aim for $16.6, with a pessimistic view predicting a fall to $12.5. This technical configuration introduces a note of caution when considering LINK’s future, advising traders to stay vigilant and keep track of market changes for more updates.
Regardless of the temporary downturn, crypto enthusiasts remain optimistic about the long-term prospects. According to CoinCodex statistics, approximately two-thirds of investors forecast that the LINK price will surge to $35 within the next month and potentially reach $40 in three months’ time. This suggests that investors in LINK could potentially double their investment by Q1 2025.
It seems clear that Chainlink might see a significant recovery if the bullish trend picks up again. Additionally, a forecast on LINK’s price indicates it could reach $44 within the next month, which has sparked positive feelings among investors.
LINK Whale Accumulation on the Rise
According to blockchain analysis company Santiment, Chainlink’s price saw a significant drop during the second part of December, similar to patterns observed in the overall crypto market. Even with this downward trend, large investors, known as “whales,” holding between 1 million and 10 million LINK tokens have seized the opportunity to buy more during the dip.
Based on Santiment’s data, these significant investors have acquired about 3.58 million LINK worth around $76.9 million during the last three days. Such whale activity is usually seen as a positive sign, implying potential long-term backing for LINK’s price trend.
As the LINK whale keeps removing their funds, the reserves on the exchange have noticeably decreased, now standing at approximately 161.5 million. This trend suggests a change in market behavior, as it appears that major investors are transferring their holdings out of exchanges. (Data from CryptoQuant supports this observation.)
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2024-12-28 12:59