🌎 Chainlink Price Down 12% Despite Whale Accumulation

Chainlink Price Retreats Amid Whale Accumulation

Chainlink’s price declined on Boxing Day, despite whales accumulating the token in large quantities. The LINK price retreated to $22.90, down by 12.45% from its highest level this week and by 26% from the year-to-date high.

This decline occurred as most cryptocurrencies crashed, with Bitcoin falling to $95,000 and the market cap of all coins dropping to $3.3 trillion. Meanwhile, whales have continued to accumulate the LINK token, with data showing one whale moving coins worth $1 million to a private wallet from Coinbase.

Whale Accumulation and Netflow Data

Another investor made a similar transaction worth $1.3 million, while another moved coins worth $566,000 from Kraken. These LINK movements happened after Donald Trump’s World Liberty Financial accumulated over $1.8 million Chainlink tokens.

Netflow data also indicates more accumulation, with the netflow of Chainlink tokens to exchanges turning negative. The netflow moved to minus 677,000 tokens, the lowest level in weeks. This suggests that whales are buying the token in anticipation of a potential price increase.

Chainlink’s Importance in the Crypto Industry

Chainlink has become one of the most important players in the cryptocurrency industry, providing its oracle solutions to major players in the decentralized finance industry, such as AAVE and Compound. Chainlink also started the Cross-Chain Token standard, which streamlines token transfers across blockchains using the Cross-Chain Interoperability Protocol.

Leading cryptocurrencies like Shiba Inu, Turbo, and Neiro now use the Cross-Chain Token standard. This has further solidified Chainlink’s position as a key player in the industry.

Chainlink Price Analysis

The four-hour chart shows that the LINK price peaked at $30.93 this month and then retreated to the current $22.7. It is now slowly forming a head and shoulders pattern, a popular reversal sign whose neckline is at $20.36.

The head is this month’s high at $30.93, while the shoulder is around $26. The LINK price has also dropped below the 50-period Exponential Moving Average and is pointing downwards.

Therefore, the path of the least resistance for the coin is bearish, with the next reference level to watch being $20.36. A move below that level could mean it moves to $13.3, which is 41% below the current level. The bearish view will become invalidated if it moves above the right shoulder at $26.