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Chainlink price retreated on Boxing Day even as whales accumulated the biggest oracle project in the crypto industry.
Chainlink (LINK) retreated to $22.90, down by 12.45% from its highest level this week and by 26% from the year-to-date high.
This decline happened as most cryptocurrencies crashed, with Bitcoin (BTC) falling to $95,000 and the market cap of all coins dropping to $3.3 trillion.
As we have covered before, there are signs that whales have continued accumulating the LINK token. Data by Etherscan shows that one whale moved coins worth $1 million to a private wallet from Coinbase. Another investor made a similar transaction worth $1.3 million, while another moved coins worth $566,000 from Kraken.
These LINK movements happened after Donald Trump’s World Liberty Financial accumulated over $1.8 million Chainlink tokens. More data shows that the netflow of Chainlink tokens to exchanges has turned negative, a sign of more accumulation. The netflow moved to minus 677,000 tokens, the lowest level in weeks.
Chainlink has become one of the most important players in the cryptocurrency industry. It provides its oracle solutions to the biggest players in the decentralized finance industry, such as AAVE and Compound.
Chainlink also started the Cross-Chain Token standard that streamlines token transfers across blockchains using the Cross-Chain Interoperability Protocol. Leading cryptocurrencies like Shiba Inu, Turbo, and Neiro now use CCT.
Chainlink price forms H&S pattern
The four-hour chart shows that the LINK price peaked at $30.93 this month and then retreated to the current $22.7. It is now slowly forming a head and shoulders pattern, a popular reversal sign whose neckline is at $20.36. The head is this month’s high at $30.93, while the shoulder is around $26.
Chainlink price has also dropped below the 50-period Exponential Moving Average and is pointing downwards. Therefore, the path of the least resistance for the coin is bearish, with the next reference level to watch being $20.36. A move below that level could mean it moves to $13.3, which is 41% below the current level. The bearish view will become invalidated if it moves above the right shoulder at $26.
This article first appeared at crypto.news
