Chainlink (LINK) traded at $15.3 on December 25, following a 3% downside correction in 48 hours. In addition, it followed a horizontal trend over the previous two weeks. Many altcoins, such as XRP, showed a similar pattern following Bitcoin. So, what do LINK investors expect? Let’s take a closer look.
As previously mentioned, the Chainlink token has been trending sideways since reaching a 20-month high of $17 on December 8. The consolidation was accompanied by declining trading volumes, typical for such cooling periods. However, while price action showed higher lows, LINK’s relative strength index (RSI; purple chart) showed lower lows.
This mismatch between price action and the RSI trend signals a possible continuation of the decline. If a short-term decline occurs, the first possible target would be around $14.3, or 7% lower than the current LINK value.
Meanwhile, as mentioned, altcoin The market is experiencing a cooling period with prices remaining horizontal. However, if Bitcoin achieves another price increase, altcoins such as Chainlink tokens may follow. As of December 25, LINK’s Christmas outlook for the coming sessions is a 7% decline.
Latest on-chain data for LINK points to a shift in whale activity, with a noticeable decrease in high-value addresses. Notably, the number of Chainlink whale addresses holding over $10 million and $1 million in LINK tokens has dropped to 136 and 720 since mid-December.
Koinfinans.com As we have reported, this trend in whale behavior is often seen as an early indicator for a broader group of retail investors. Additionally, the actions of these whales are important as they have the potential to influence the market, especially if they decide to sell some of their holdings, thus increasing the selling pressure.