Chainlink (LINK) Price Prediction: Will the Bulls Defend Key Support?
Chainlink (LINK) has shed approximately 30% since its peak in early December, now stabilizing near a critical support level. The daily chart reveals a bearish head-and-shoulders pattern, often signaling a trend reversal.
Whale Movements Signal Potential Selling Pressure
Blockchain analytics platform Lookonchain highlights a notable whale activity: a significant deposit of 250,000 LINK (worth $5.37 million) into Binance and OKX. Historically, such deposits have often preceded sell-offs. From December 14 to 18, this same whale withdrew 595,000 LINK (approximately $17.31 million) from Binance at an average price of $29.10.
Currently, the whale faces an unrealized loss of around $4.5 million, which could increase selling pressure as they may seek to minimize losses.
Open Interest and Exchange Outflows
Data from Coinglass reveals a 9% decline in LINK’s open interest, bringing it down to $570 million.
Meanwhile, recent outflows have seen approximately $60 million worth of LINK withdrawn from exchanges, indicating a shift in market sentiment.
Long Position Liquidation Surge Observed
Coinglass data reveals a substantial liquidation of long positions across various timeframes, particularly within the 12-hour and 24-hour periods. This trend often suggests bearish market sentiment or a decline in prices, as long positions are usually liquidated during price drops.
Whale Accumulation: A Contrasting Signal
On the other hand, blockchain analytics firm Santiment reports that key whale addresses holding between 1 million and 10 million LINK have capitalized on the price dip. Over the last three days, these whales have accumulated 3.58 million LINK, valued at approximately $76.9 million. This accumulation reflects strong confidence in a potential recovery, suggesting some long-term players view the current levels as an opportunity.
What’s Next for LINK?
The immediate outlook for LINK hinges on the $21 support level. A decisive breakdown below this level could pave the way for a swift decline to $18, with further downside risk toward $15–$16 in a worst-case scenario.
Conversely, defending the $21 level could spark a recovery, pushing LINK toward $25. A sustained move above $28 would invalidate the bearish setup, potentially setting the stage for a retest of $30 and reigniting bullish momentum.
In conclusion, while short-term bearish pressure remains due to whale activity and broader market trends, strategic accumulation by key players suggests long-term confidence in LINK’s recovery. Traders should closely monitor the $21 support level for clues about the next major price move.
