Chainlink (LINK) Price Stagnates as Whale Investors Book Profits
Chainlink (LINK) price has remained stagnant after surpassing the $20 mark on February 10. However, on-chain data trends suggest that whale investors taking profits could trigger a pullback in the price.
Importance of Chainlink in Asset Tokenization and RWA Sectors
Chainlink’s price has been on an uptrend due to the LINK token’s significance in the asset tokenization and Real World Assets (RWA) sectors.
Rapid Selling Trend Among Chainlink Whale Investors
A concerning selling trend has been observed among whale investors holding LINK, which threatens to disrupt the rally.
Whale Investors Offloaded 7 Million LINK Tokens in Last 10 Days
Institutional interest in asset tokenization has increased since the approval of the Bitcoin spot ETF in mid-January. Chainlink plays a central role in the Real World Asset sector by providing off-chain price feeds to blockchain protocols. However, major stakeholders have started taking profits over the past week, with 6.9 million tokens worth $130.4 million being sold by Chainlink whales between February 3 and press time on February 12.
Potential Consequences of Whale Sell-Off
A high-volume sell-off by whales poses risks to the Chainlink price rally. It can dilute market supply, making it difficult for prices to rise in the short term. Additionally, if large stakeholders continue to sell off their holdings, it may spook retail investors and trigger bearish positions by copy-trading bots. These factors combined could lead to a short-term pullback in Chainlink’s price.
Forecast: Can Chainlink Price Stay Above $20?
Based on analyzed on-chain data trends, Chainlink holders should anticipate a price decline below the $20 support level if the whale sell-off persists. However, considering the growing interest in asset tokenization and the bullish momentum from Bitcoin breaking above $50,000, LINK price could find strong support around $16. IntoTheBlock’s data supports this outlook, showing that 63,270 addresses acquired 147.2 million LINK at an average price of $16.30. If the $16 support level fails, there is a risk of a downswing below $15.
Potential Rally and Sell-Wall Levels
If the whales curtail their selling trend, there is a chance for a rally towards $25. However, bears may establish a sell-wall around the $24 territory where 74,160 addresses bought 34.1 million LINK at an average price of $24.3. Exiting at this point could trigger another pullback in LINK’s price.
Noah Rypton stands as an enigmatic fusion of crypto analyst, relentless researcher, and editorial virtuoso, illuminating the uncharted corridors of cryptocurrency. His odyssey through the crypto realms reveals intricate tapestries of digital assets, resonating harmoniously with seekers of all stripes. Noah’s ability to unfurl the labyrinthine nuances of crypto intricacies is elegantly interwoven with his editorial finesse, transmuting complexity into an engaging symphony of comprehension. An unwavering beacon for both seasoned adventurers and neophytes in the crypto cosmos, Noah’s insights forge a compass for informed decision-making amidst the tides of ever-evolving cryptocurrencies. With an artist’s eye for precision, he crafts a distinctive narrative, enriching the vibrant tableau of the crypto landscape.