Wed Dec 18, 2024 ▪
4
min reading ▪ by
Ariel R.
The price of the Chainlink (LINK) crypto recently fell by 13%, reaching $27. This downtrend erases the gains of the previous week. The downside: crypto whales continue to accumulate this promising token.
Chainlink: a 13% drop in a turbulent crypto market
The price of the crypto-asset Chainlink (LINK) fell 13% in three days. It hit $27, down from a yearly high of $30.95. This correction reflects the general weakness of the cryptocurrency market. For example, the price of Bitcoin fell to $105,000. The flagship crypto thus recorded a drop of 3% compared to its weekly peak of $108,000.
According to technical indicators, the LINK broke its support at $27.58. It forms a bearish “three tops” pattern. Which signals increased selling pressure. According to expert crypto analysts, the price could hit a psychological bottom at $25 before a possible rebound.
This drop could, however, be seen as a buying opportunity, particularly for investors betting on projects with high adoption in DeFi.
Despite this fall, Chainlink continues to play a key role in blockchain. The proof is that it secures a total value of $41 billion through partnerships with major platforms like AAVE and Compound. These solid fundamentals place LINK among the most promising projects in the crypto ecosystem.
Strategic Accumulation: Whales and Institutions Bet on Chainlink
Despite the price decline, a crypto whale has stepped up its accumulation of LINK tokens. Concretely, he added 65,000 units to his portfolio on December 18. That’s almost $1.8 million. According to LookOnChain, this transaction brings the total acquisition of this whale to more than $17.3 million.
At the same time, institutions like World Liberty Financial (led by Donald Trump) have also shown their interest in Chainlink. Recently, this decentralized finance platform acquired $2 million worth of LINK tokens to integrate Chainlink’s Oracle solutions into its systems.
Technical indicators and outlook: what does the future hold for LINK crypto?
From a technical perspective, Chainlink shows signs of short-term weakness. Its price is moving around the 23.6% Fibonacci retracement level, at $26. However, it remains below the midline of Andrew’s Pitchfork model.
That’s not all! This crypto asset also broke its 50-period moving average. Which could signal a continuation of the decline to $25.
However, some crypto analysts remain optimistic about a potential rebound. This forecast is based on:
- the growing demand for Chainlink’s DeFi solutions,
- its major partnerships such as that with Swift Network,
- discussions around a potential ETF based on LINK.
Upstream, IntoTheBlock data reveals a continued increase in the number of holders : more than 688,000 active addresses in December (compared to a monthly average of 686,000).
Despite a significant correction, Chainlink therefore remains a key player in cryptocurrency and decentralized finance.
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Ariel R.
My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)
