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For the past few weeks, the price of Chainlink has been on an upward trend. However, its momentum seems to have slowed down in the last 48 hours. It is noteworthy that whales have been signaling an upcoming correction for a while, and this correction could happen very soon. It is believed that whales are hindering the price increase of LINK.
Did Whales Cause the Drop in Chainlink (LINK) Price?
Chainlink‘s price recently surpassed the resistance level of $21.69, reaching its highest level in 25 months. However, today the Oracle token fell by 5.66%, and this decline soon turned into a correction. The current trading price of LINK is seen to be $20.77.
It seems that investors need to be prepared for a potential decline. Whale investors, in particular, have been signaling a downward trend for a long time. Since the beginning of February, addresses holding between 10,000 and 100,000 LINK have been consistently selling. In the last one and a half months, about 2 million LINK have been sold from these whale addresses, which translates to a sale of approximately $40 million.
These whale addresses selling their accumulated LINK during price increases and causing corrections is considered a strong sign that the trend may reverse. This suggests that past sales could predict future price declines.
A Large Portion of LINK Supply Controlled by Whales
The reason whales can significantly influence the price of LINK is that this group of wallets controls about 69% of all circulating LINK supply. The remaining 31% of the supply is distributed among smaller fish and smaller wallet owners.
A price drop is currently expected, but it is important to note that this decline has not yet occurred. Because the sales are not as significant or sudden as in the past. This could result in a correction when LINK’s price experiences a decline.
Key Levels to Watch for LINK Price
While Chainlink’s price continues to rise, the altcoin appears to be losing momentum in short-term time frames. This is further evidenced by negative signals given by the Moving Average Convergence Divergence (MACD) indicator.
MACD tracks the relationship between two different moving averages of a security’s price. It analyzes the difference between the indicator line (short-term) and the signal line (long-term) to determine the direction of the trend, momentum, and potential buy or sell signals.
Currently, the indicator is showing a downward trend with red bars recorded in the histogram. Also, the 50-day Exponential Moving Average (red) is currently above the candlestick. This can be interpreted as a short-term bearish signal. In this case, LINK could be expected to drop to as low as $20.12.
However, the 100-day EMA (green) seems to be providing a support level for LINK. If the Oracle token prevents a significant drop, it could stay above $20.12. Individual investors’ additional support could reverse the potential downtrend and push the altcoin above the $21 level, invalidating the bearish outlook.
