Chainlink Price Drops Amid Market Decline, but Whale Accumulates Tokens

Chainlink’s price experienced a significant reversal, dropping for three consecutive days and erasing some of the gains made last week. The Chainlink token fell to $27, marking a 13% decline from its highest level this year and bringing its market cap to over $17 billion.

This retreat mirrored losses seen across other popular cryptocurrencies. Bitcoin dropped to $105,000 from its weekly high of $108,000. Similarly, Ethereum, Ripple, and Solana were down by over 3%.

Whale Accumulates LINK Tokens Amid Decline

Despite the decline, one whale continued to accumulate LINK tokens, betting on a potential recovery. The whale withdrew 65,000 LINK tokens worth $1.8 million, bringing the total accumulation to over $17.3 million in the past four days.

The accumulation came shortly after World Liberty Financial acquired LINK tokens worth over $2 million. The upcoming Decentralized Finance platform has selected Chainlink as its oracle provider.

Chainlink’s Fundamental Strength

Chainlink is widely regarded as one of the most fundamentally sound projects in the blockchain industry. Its oracle solutions are utilized by major DeFi players like AAVE, Spark, and Compound. The total value secured by Chainlink has grown to over $41 billion, surpassing competitors such as Chronicle, Pyth, and Edge.

The number of Chainlink holders has also continued rising. According to data, there are now over 688,000 addresses with LINK balances, exceeding the 30-day average of 686,000. This increase indicates sustained demand for the token.

Partnerships and Future Prospects

Chainlink is also expected to benefit from its partnership with Swift Network and other large platforms leveraging its technology for tokenization. Furthermore, there are discussions about the potential approval of a Chainlink ETF by the Securities and Exchange Commission.

Chainlink Price Analysis

The 4-hour chart shows that LINK’s price peaked at $30.95, forming a small triple-top chart pattern—a bearish signal. It has since declined and dropped below the pattern’s neckline at $27.58.

Currently, Chainlink is hovering slightly above the 23.6% Fibonacci Retracement level at $26. It has also fallen below the middle line of the Andrew’s Pitchfork tool and the 50-period moving average.

Therefore, the coin will likely continue rising ahead of the Federal Reserve decision. If this happens, it may drop to the next psychological level at $25 and then bounce back as investors buy the dip.

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