Chainlink (LINK) experienced a significant price surge earlier this month, fueled by the “Trump Pump” – a 21% price hike following an investment in LINK by World Liberty Financial (WLF), a company with ties to the Trump administration. However, recent on-chain data suggests that this rally may have been short-lived, with large holders, or “whales,” actively selling their LINK holdings.
Whale Activity Spikes, Then Evaporates
Towards the end of November, as Chainlink prices rallied above $20, whale transaction activity surged. This heightened level of activity continued throughout the period when LINK traded above $22, indicating significant whale involvement in the price movement.
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However, the past two weeks have witnessed a decline in whale activity. Two notable spikes in whale transactions occurred on the 20th and 26th of December, coinciding with LINK’s price rejection at the $25 level. This suggests that many whales capitalized on the price surge to secure profits, contributing to the recent downward pressure on LINK’s price.
The $30 Rejection: A Turning Point?
The failure of LINK to sustain its momentum above the $30 level has significant implications for the asset’s future price trajectory. The recent surge in whale selling activity, coupled with the rejection at $30, indicates a lack of conviction among large holders, potentially signaling a shift in market sentiment.
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Liquidity Hunting: A Bearish Undercurrent
The past two weeks have witnessed a consistent decline in LINK prices, with the cryptocurrency struggling to maintain support levels. This downward trend suggests that the market is actively hunting for liquidity pockets – price levels where significant trading volume is concentrated.
The $20 level, which provided some support for LINK on December 30th, could become a new target for bearish pressure. If this level breaks, it could trigger further declines, potentially leading to a more significant price correction.
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Conclusion
The recent surge in whale selling activity and the rejection of the $30 price level raise concerns about the short-term outlook for Chainlink. While the cryptocurrency demonstrated significant momentum earlier this month, the lack of sustained whale support and the emergence of bearish pressure suggest that a period of consolidation or even a further price decline may be imminent.
Disclaimer: This article is for informational purposes only and should not be construed as financial advice. Cryptocurrency investments involve significant risks, and investors should conduct thorough research before making any investment decisions.
