Bullish Whales are Showing Indications of Fatigue
The Chainlink (LINK) price has dropped by 15% from its peak of $16.60. On-chain analysis is essential to comprehend the reasons behind the correction and the likelihood of a rebound.
Chainlink bulls seem tired after a 30 days of consistent buying pressure. The question now is whether the LINK price will rebound to $20 or retrace to $10.
One critical factor is that the top 150 Chainlink holders rapidly accumulated 36.07 Million LINK between October 17 and November 11. The accumulation brought the total to 730.37 Million tokens, leading to a whole lot of rally. Nonetheless, ever since, buying pressure has slowed down significantly.
As of November 10, Chainlink investors held 732.37 Million LINK tokens. Nonetheless, this number has now dropped to 730.81 Million LINK. This indicates that positive trend top investors have reduced their holdings, raising concerns about fatigue.
The Buying Fatigue is Spreading Toward the Retail Market
Along with the whales starting to book profits, on-chain data trends show that retail investors are likewise buying less. The number of investors adding more LINK to their holdings has declined by 53% since November 10.
The declining number of active users increasing their balances implies growing disinterest and waning buying pressure. Consequently, the LINK price has decreased 15% since investors began buying less around November 10.
LINK Price Prediction: Further Consolidation Before $20 Rally
Based on the on-chain metrics, Chainlink could consolidate around the $12 – $15 area if positive trend fatigue persists. The Worldwide In/Out of the Money (GIOM) data likewise confirms this prediction, showing that the bulls could mount a whole lot of support buy-wall around the $12 area, but if the bears can overturn that support area, Chainlink’s price could tumble toward $10.
On the upside, the bulls could seize control of the market if Chainlink’s price scales to $15. This would require whole lot of buying pressure to push the price toward $20.
Hot Take: LINK Price Outlook Hinges on Rested Bulls and Buying Interest
The recent trend indicates that key investors and retail buyers are showing indications of fatigue in their buying interest, driving the price of Chainlink downward. If sellers continue to dominate, LINK could retract further. Nonetheless, if a fresh wave of positive trend momentum emerges, the LINK price could rebound and seek to test the $20 level once again.
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