Large sum of Chainlink tokens ditched by a significant investor, resulting in a decline for LINK: Anticipated developments for Chainlink's future token value.
Chainlink's [LINK] bearish outlook persists, with no immediate recovery in sight as the cryptocurrency plunges for a third consecutive day. A whale's significant sell-off of LINK tokens on Binance may have exacerbated the price decline.
On May 30th, a whale with the address 0x33f7 dumped 722,416 LINK tokens, worth approximately $11.11 million, onto Binance, the world's largest cryptocurrency exchange. This substantial token dump coincided with a breakdown in the price action, further fueling the bearish sentiment.
At the time of writing, LINK was trading at $14.50, marking an 8.25% drop in the previous 24 hours. The increased trading volume of 45% suggests a rush of panicked sell-offs and leveraged plays entering the market.
Despite the ongoing sell-off, some investors and long-term holders may be capitalizing on the dip by accumulating LINK tokens. CoinGlass data indicates that $3.37 million worth of LINK tokens exited exchanges over the past 48 hours, which could signify accumulation by long-term holders.
Conversely, intraday traders appear to be betting heavily on the bearish trend. Traders are heavily leveraged at $14.29 on the lower side (support) and $15.01 on the upper side (resistance). This imbalance, with significantly more short positions than long ones, indicates that sellers are currently in control.
Technical analysis suggests that LINK's downward momentum is likely to continue in the near term. The asset has fallen below its ascending trendline and key support level of $15, making a bullish entry unlikely. If the price closes a daily candle below the $14.75 level, it could potentially drop by 25%, reaching the $10.85 mark. However, a bullish reversal would only be possible if the LINK price reclaims and moves above the $15 and $16 levels.
Sources:[1] Lookonchain post on X (formerly Twitter)[2] CoinGlass[3] TradingView[4] Unnamed analysts[5] Various forecasts ranging from market research firms to independent analysts.
- The technical analysis of LINK indicates that its downward momentum is likely to continue, with the asset falling below its ascending trendline and key support level of $15, making a bullish entry uncertain.
- Despite some investors and long-term holders potentially capitalizing on the LINK dip by accumulating tokens, intraday traders appear to be heavily betting on the bearish trend, as they are significantly more leveraged on the lower side than the upper side.
- On May 30th, a significant sell-off of LINK tokens on Binance by a whale with the address 0x33f7 may have exacerbated the price decline, contributing to the bearish sentiment in the finance and crypto market.
