- Chainlink’s price struggles amid whale activity, testing a crucial trendline near $12.93, which could decide its next major move.
- Despite selling 170M LINK, whale holdings of 10M-100M tokens remained stable, suggesting retail investors drove recent price declines.
- LINK’s long-term trendline from July 2023 is crucial; a break below could trigger further drops, while holding above may fuel a rebound.
Chainlink ($LINK) has faced volatility over the past few weeks, experiencing sharp price movements alongside notable whale activity according to analysis by Ali. Over the last three weeks, whales have sold more than 170 million LINK tokens. This distribution of tokens correlates with the price decline that LINK has encountered, especially since March 4. While the price initially surged, it failed to hold onto its gains, eventually dropping back toward $12.98 by April 3. Despite the price fluctuations, large wallet holdings have remained relatively steady.
Whale Behavior and Price Decline
From March 4 to April 3, LINK’s price demonstrated strong resistance at higher levels. LINK had an initial surge followed by an immediate decline, going back and forth between local peaks and declines. Importantly, price recovery was witnessed from March 20 to March 25. The recovery, however, was short-lived beyond the resistance price levels, and the price started declining again.
Interestingly, whale holdings, which contain between 10M to 100M LINK tokens, remained stable during this period of volatility. This suggests that whales did not aggressively distribute their holdings, despite the overall market decline. Consequently, the drop in price may be more a result of market sentiment and smaller retail investor activity rather than large wallet sell-offs.
Testing a Crucial Trendline
A long-term rising trendline that has been supporting the price of LINK since July 2023 is being tested currently as the price continues to oscillate. The price of LINK initiated a steady uptrend in July 2023 and rose from 5.25 USDT to 16.00 USDT by the end of the year. Prior to reversing in mid-2024, the trend reached a peak of 21.00 USDT and persisted through early 2024. LINK reached an all-time high of 26.00 USDT in the current bull run, which began in September 2024.
After a dip, LINK is currently trading close to 12.93 USDT, which is exactly where the trendline from July 2023 is. The next course of action for LINK will be heavily influenced by this trendline. More drops can occur if it breaks below this trendline. However, it can serve as a base for a subsequent upward push if the trendline holds.
