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After a brief reversal to the resistance, the Chainlink price has faced a pullback, dragging the levels close to the multi-month support. While the bears are constantly exerting more pressure, the submissive behaviour of the bulls may eventually lead the rally towards lower ranges. On the other hand, the whales have also turned bearish on Chainlink, which should be a huge matter of concern for the upcoming LINK price rally.
The whale movement is closely monitored, as it is considered one of the best indicators to speculate on the next price action of the token. A greater accumulation raises optimism among the market participants, while a huge drop in their holding could certainly create fear among them. In a recent update, the whales have shed off a huge portion of their holding, which has raised concerns for the next price action.
The Santiment data shared by a popular analyst, Ali, shows a massive drop in the LINK whale holdings. They have offloaded nearly 4.3 million LINK in the last 48 hours, which has promoted the bearish activity. This appears to be a quite significant move, probably to tone the market where the small players take advantage of the market volatility. So what’s next for the LINK price rally?
Chainlink (LINK) Price Analysis
The latest rebound from the lows close to $15.5 was supported by over 1659 transactions with a minimum value of $100K. Meanwhile, the unique active LINK address shot up above 9500, which is the highest in the past 4 weeks. Despite this, the drop in whale accumulation, which has dropped from above 200 million to close to 181 million, seems to have dragged levels below the crucial range.
The latest pullback has dragged the LINK price below the ascending triangle while the bulls are trying hard to defend the support zone that it held since December. The volume fluctuates, which suggests a rise in volatility. Besides, the RSI continues to form lower highs and lows, indicating a rise in the bearish dominance, while the OBV triggered a bearish divergence before reaching the local highs.
These indicators suggest a drop in the strength of the rally, which could further push the prices lower. Currently, the LINK price is strongly holding above $19 support but a lack of bullish candles may initiate a 17% correction close to $15; otherwise, a rebound could elevate the rally beyond $25. The present market dynamics show only a little scope for a bullish reversal and hence, holding the crucial support at $18.97 is mandatory.
