Chainlink Price Rally at Risk? $27M Whale Transfer Sparks Fears
The recent crypto market downturn has seriously affected tokens and is still enforcing turbulence. Its clear representation is the 30% crash in Chainlink (LINK) price. Interestingly, amid this bear-driven market, this token’s chart presented an 8.6% recovery today, boosting investors’ confidence. However, at the same time, a $27M Whales transferred its holdings to a crypto exchange, sparking concerns over a potential sell-off. Will this altcoin sustain its momentum? Let’s discuss.
Chainlink Price Recovery Fear Whales Dumping
On-chain data reveals that the whales have been going after this altcoin, possibly for selling. Recently, more than 600,000 LINK tokens have moved to crypto exchanges. This has seriously contributed to the building selling pressure on the token. Additionally, it shows investors’ declining confidence in the token.
However, things could be even more serious, as a single whale deposited 1.77 million Chainlink tokens worth $27 million on the BitGet exchange. The reasons for this move can be anything, but such large inflows are often interpreted as selling sentiments. If this happens, it could put significant downward pressure on the market.
This is concerning, as the Chainlink price today barely recovered 8.6%. It currently trades at $15.49, has a market capitalization of $9.87B, and poses another threat to the decline.
Trading Volume Improves, But Sentiment Remains Bearish
Despite the price increase, the LINK’s trading volume has increased barely after a crash earlier in the day. It is currently at $626.24M but lacked heightened market activity, limiting its growth.
More importantly, open interests, a key metric for trader engagement, has not recovered well from the drop and is still at a low of $464.09M
The long/ short ratio, at 1.0471, reveals that nearly half of the traders are shorting and expecting a further decline. Overall, these factors show strong bearish sentiments and struggles in the price recovery.
Will Chainlink Price Crash Next?
Crypto analyst Ali Martinez reveals that the TD sequential indicator flashes a buy signal. This indicates a trend reversal after a prolonged downtrend. As a result, the LINK token might witness upward momentum, but it would require other bullish factors to confirm.
Additionally, the token’s technical indicators present mixed signals. With that, the critical support level is near $15.4. Failure to hold this level will further push the token down. However, a breakout above $16 would push the token toward $20. per analysts’ Chainlink price prediction
Should You Concern?
Ups and downs are quite common in the crypto market, where experienced investors often do not fear minor volatility. LINK token is currently at a stage where its next move could decide its entire trajectory, either a drop to $12 or a recovery to $20.
With the appearance of the TD sequential indicator, things might turn for the good. However, investors must monitor for better bullish factors before making a decision.
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