Key Takeaways:
- LINK could drop to $1 in the current quarter.
- Bearish technicals support the claim.
- Whales use the opportunity to accumulate, boosting Chainlink's bullish expectations.
YEREVAN (CoinChapter.com) – Chainlink (LINK) has charted in unison with Bitcoin and the top 20 crypto assets by market cap, consolidating sideways since August 2022. As a result, the LINK/USD exchange rate stood just below $7 on Oct 24, unable to break its technical resistance albeit holding on to a stubborn support level.
LINK technicals
Despite the strong support, Chainlink token hinted at more pain ahead, as it formed a setup dubbed the ‘pennant,’ best visible on the daily chart. The pennant occurs after a sharp move (either bullish or bearish) and entails two converging trendlines with a similar slope.
Furthermore, they enclose the price action through consecutive support and resistance retests.
The pennant is a continuation pattern. Thus, it will likely adopt the bias preceding the formation when LINK exhausts the consolidation period. The Chainlink token formed the pennant after a sharp decline. Thus, a similar drop could be expected.
LINK headed for $1?
If the bearish scenario continues, LINK could sink as low as $1, at least in the short-term outlook. Furthermore, the declining trading volumes testify to the short-term bearish prediction.
However, the token depends on the Bitcoin price action, the crypto market climate, and the macroeconomic trends. Thus, if the wind changes for BTC in Q4, LINK investors could also scoop gains.
Meanwhile, the whales, addresses holding large amounts of LINK coins, already caught the bullish whiff and sprung to action.
Chainlink Whales on the move
In short, ‘whale-watching’ is not an idle activity on the crypto market. Large addresses typically set the trend for smaller fish, sending ripples across to other digital asset holders. When whales start accumulating, it signals that they expect price appreciation shortly.
Moreover, many market participants whale watch, assuming the whales command more information on the market movements and might know details that are out of little fish investors’ reach.
According to the crypto analytical platform Santiment, LINK whales are taking advantage of the indecisive price action. Moreover, on Oct 23, the number of whales was the highest since 2017 and sat at 458 addresses.
Other digital assets, like Cardano (ADA) and Polygon (MATIC), also exhibited signs of recovery. Thus, the LINK whale accumulation could be a part of a larger trend.
However, investors should watch the macroeconomic climate closely. Single-asset rallies, especially from large-market-cap assets, remain unlikely within a bearish market. Click here for more news on all things crypto, and keep up with the ever-changing market!
