YEREVAN (CoinChapter.com) — Chainlink (LINK) traded at $15.3 on Dec. 25, after a 3% downward correction in the previous 48 hours, consolidating sideways for the previous two weeks. Many altcoins, such as XRP, exhibited a similar pattern following Bitcoin‘s lead. So, what can traders expect from LINK? Let’s take a closer look.
LINK Technicals Bearish
As mentioned, the Chainlink token has been consolidating sideways since peaking at a 20-month high of $17 on Dec 8. The consolidation was accompanied by decreased trading volumes, typical for such cooloff periods. However, while the price action printed higher lows, LINK’s relative strength index (RSI; purple graph) printed lower lows.
Such dissonance between the price action and RSI bias indicates a possible bearish continuation. If a short-term decline occurs, the first likely target will be approximately $14.3, or 7% lower than the current LINK value.
Meanwhile, as noted, the altcoin market is experiencing a cooloff, with prices flatlining. However, altcoins such as Chainlink tokens might follow if Bitcoin gets another price boost. As of Dec 25, LINK’s Christmas outlook for the coming sessions is a 7% drop.
Chainlink Whales Take Profits.
Recent on-chain data for Chainlink indicates a shift in whale activity, with a noticeable decrease in high-value addresses. Specifically, the count of Chainlink whale addresses, those holding over $10 million and $1 million in LINK tokens, has reduced to 136 and 720 since mid-December.
This trend in whale behavior is often viewed as an early indicator for the broader group of retail investors. Additionally, the actions of these whales are significant as they have the potential to impact the market, especially if they decide to sell a portion of their holdings, thereby increasing selling pressure.
