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Chainlink price pulls back 5% as whale activity declines

Chainlink price pulls back 5% as whale activity declines

Grafa2024/12/19 12:40
By: Isaac Francis
LINK+2.49%

Chainlink (CRYPTO:LINK) recently experienced an 87% surge in the past 30 days, reaching its highest levels in three years.

However, the price has pulled back by approximately 5% in the last 24 hours, indicating short-term weakness.

Whale activity has also shown signs of decline, with the number of wallets holding between 100,000 and 1,000,000 LINK dropping from 558 in late November to 515 in mid-December.

This decrease suggests that large investors are either reducing their positions or taking profits, signaling potential caution or a shift in sentiment among major holders.

“Whale activity has declined, with wallets holding 100,000–1,000,000 LINK dropping from 558 in November to 515, signaling reduced confidence,” according to data from Santiment.

Tracking whale activity is crucial, as these large holders can significantly influence price movements.

The drop in whale numbers may exert selling pressure on LINK, contributing to the recent pullback.

Chainlink’s BBTrend indicator also points to weakening momentum, falling from a peak of 19.31 on December 15 to 7.46, reflecting a slowdown in bullish momentum.

The BBTrend, which measures the strength of price trends, indicates that the uptrend is losing steam, suggesting a potential period of consolidation or retracement.

“Chainlink BBTrend is declining, suggesting that while the price remains in an uptrend, momentum has slowed,” noted TradingView data.

If whale activity stabilises or reverses, it could trigger renewed accumulation and a price rebound.

However, if the trend continues, LINK may experience further consolidation or a pullback in the short term.

At the time of reporting, the price of Chainlink (LINK) was $24.71.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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