Key Takeaways:
- The price of Chainlink (LINK) has dropped below $6.
- Analysts expect a further correction in the LINK price.
- The drop in whale transactions suggests the price could fall further.
YEREVAN (CoinChapter.com) — At the end of May and throughout June, Chainlink (LINK) observed intense price correction. Its market rate fell to around $5 on June 19 from the $8.5 it had scaled in the previous month. However, whale transactions and holdings increased during the same period despite declining prices.
Unlike the scenario in June, recent data shared by analyst Ali on Twitter presents a different scenario.
Notably, while transactions have decreased, their holdings have remained stable. According to Ali, this development warrants attention from market participants and investors.
Such a steep decline in whale transactions and steady holdings might signal diminishing interest or confidence among major stakeholders.
TradingView charts reveal that the price of LINK slipped under the $6 mark on Sep. 1. This marks a 25% decline in its value in the past month alone. On Aug. 9, the token exchanged hands at around $7.83.
Chainlink (LINK) price could decline further
According to Ali, once Chainlink breaches the crucial $5 support level, it could pave the way for a correction to $4 or even $3. Such a scenario would usher in a major downturn, impacting short-term investor sentiment.
However, a more optimistic note from market intelligence platform Santiment indicates that Chainlink has reached a notable level historically associated with price rebounds.
Chainlink’s price remains nearly 90% below its all-time high of $52.88 on May 10, 2021. Considering this factor and the potential market rebound, the current price of around $6 can be a good entry point for long-term investors.
While in the short-term, the price may slump to $4, as indicated by Ali, its recovery could bring huge profits should one bet on a LINK rally.
Chainlink (LINK) played a pivotal role in the recent tokenization experiment conducted by the financial messaging giant Swift. This comes as more bullish news for the altcoin.
While revealing the experiment’s successful outcome, Swift disclosed its utilization of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to ensure seamless interoperability among the networks engaged in the tokenization trial.
The success of the experiment and bullish on-chain metrics could prove to be the catalysts needed to drive a possible LINK price recovery.
