Chainlink price forms a risky pattern despite whales accumulation

Chainlink price tumbled on Boxing Day as whales accumulated the largest oracle project in the crypto industry.

Chainlink (LINK) is down 12.45% from this week’s high and 26% from its year-to-date high at $22.90.

This decline occurred as most cryptocurrencies collapsed, with Bitcoin (BTC) falling to $95,000 and the market cap of all cryptocurrencies falling to $3.3 trillion.

As we mentioned before, there are signs that whales continue to accumulate the LINK token. Etherscan’s data shows that a whale moved $1 million worth of money to a private wallet on Coinbase. Another investor made a similar transaction worth $1.3 million, while another moved $566,000 worth of coins from Kraken.

These LINK movements occurred after Donald Trump’s World Liberty Financial accumulated over $1.8 million in Chainlink tokens. More data shows that the net flow of Chainlink tokens to exchanges has turned negative, a sign of further accumulation. Its net flow rose to minus 677,000 tokens, its lowest level in weeks.

Chainlink has become one of the most important players in the cryptocurrency industry. It offers oracle solutions to the biggest players in the decentralized finance industry, such as AAVE and Compound.

Chainlink also launched the Cross-Chain Token standard, which facilitates token transfers between blockchains using the Cross-Chain Interoperability Protocol. Leading cryptocurrencies such as Shiba Inu, Turbo and Neiro now use CCT.

Chainlink price forms H&S formation Chainlink price chart | Source: crypto.news

The four-hour chart shows LINK price rising to $30.93 this month and then falling back to the current $22.7. Now slowly the neckline is forming the head and shoulders formation, a popular reversal mark at $20.36. The head is at this month’s high of $30.93, while the shoulder is around $26.

Chainlink price has also fallen below the 50-period Exponential Moving Average and is pointing downwards. Therefore, the path of least resistance for the cryptocurrency is bearish and the next reference level to watch is $20.36. A move below this level could mean a drop in the price to $13.3, which is 41% below the current level. The bearish view will be invalidated if the right shoulder breaks above $26.