Bitcoin continues to hold above $29,000 while the decline in altcoins has slowed down for now. However, the overall market uncertainty is at alarming levels. We see this also in the price of Chainlink (LINK). Despite being considered a good long-term alternative, what does the short-term outlook promise for investors?
Chainlink (LINK) Analysis
Since reaching a three-month high of $8.46 on July 20th, the price of Chainlink has been in a downtrend. As the price continues to fall, long-term investors are reducing their positions, signaling further downside for investors. On August 3rd, the Chainlink (LINK) price dropped to $7.20. This represents a 15% decline from the recent peak.
On-chain data suggests that long-term investors are now trading with fears that the LINK price rally may have come to an end. Chainlink has faced intense selling pressure from long-term investors this week. According to Santiment’s Age Consumed data, selling intensified when the LINK price fell below $7.90 around July 28th.
Based on the chart below, the LINK Age Consumed, which was 100.73 million on July 27th, has exceeded 225 million each trading day since July 30th. This indicates these sales.
Age Consumed: It is a data that is produced by multiplying the number of days passed since the last movement of coins that have been held for a long time by the number of tokens traded by long-term investors recently. Continuous increases in Age Consumed indicate that coins held for a long time are on the move.
LINK Coin Price Prediction
Chainlink whales also significantly reduced their trading activities last week. This supports the increasing downward trend among long-term investors. According to the chart below, Chainlink whales made 527 Large Transactions on July 20th. On August 2nd, there was a 78% decrease compared to July 20th, with only 139 large transactions.
When whales reduce their trading activities, market liquidity decreases and traders often have to lower prices to fulfill orders. If bulls fail to gather enough market demand to counter the selling pressure from large investors, the ongoing LINK price correction may further extend. If the decline continues, the LINK Token price could drop to $6.5.
