On Boxing Day, despite whales increasing their holdings of Chainlink, the price of the leading oracle project in the crypto industry took a dive.
Chainlink’s price dropped to $22.90, marking a 12.45% decline from its weekly high and a significant 26% drop from its year-to-date peak. This slump occurred amidst a broader cryptocurrency market crash, with Bitcoin falling to $95,000 and the total market cap of all coins shrinking to $3.3 trillion.
Recent data indicates continuous accumulation of LINK tokens by whales. Etherscan data shows multiple large transactions, including one whale moving $1 million worth of coins from Coinbase to a private wallet. Another investor transferred $1.3 million worth, and yet another moved $566,000 worth from Kraken. This follows Donald Trump’s World Liberty Financial’s accumulation of over $1.8 million in Chainlink tokens. Additionally, the netflow of Chainlink tokens to exchanges has turned negative, reaching -677,000 tokens, the lowest in weeks.
Chainlink is a key player in the crypto space, offering oracle solutions to major decentralized finance platforms like AAVE and Compound. It also initiated the Cross-Chain Token (CCT) standard, which simplifies token transfers across blockchains via the Cross-Chain Interoperability Protocol. Popular cryptocurrencies such as Shiba Inu, Turbo, and Neiro now utilize CCT.
Technical analysis reveals a concerning pattern. The four-hour chart shows that LINK peaked at $30.93 this month and has since declined to $22.7, forming a head and shoulders pattern. The neckline of this pattern is at $20.36, with the head at the monthly high of $30.93 and the shoulder around $26.
The price has fallen below the 50-period Exponential Moving Average, suggesting a bearish trend. The next key level to watch is $20.36. A break below this level could potentially lead to a further decline to $13.3, a 41% drop from the current price. However, the bearish outlook will be invalidated if the price rises above the right shoulder at $26.
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