Chainlink Drops 8.25% as Whale Sells $11.11 Million in LINK

Chainlink (LINK) experienced a significant downturn as a whale address, 0x33f7, offloaded 722,416 LINK tokens worth $11.11 million on Binance. This substantial sell-off accelerated the price breakdown of LINK, which had already been struggling to maintain its support levels.

The price of LINK broke below both its ascending trendline and the $15 support level, indicating a strong bearish signal. This downward momentum has continued for three consecutive days, with no signs of an early recovery. The price of LINK at the time of the report was $14.50, reflecting an 8.25% decrease in the past 24 hours.

Despite the bearish sentiment, some investors and long-term holders saw this dip as an opportunity to accumulate more LINK tokens. Spot outflow data showed that $3.37 million worth of LINK tokens exited exchanges over the past 48 hours, suggesting that long-term holders might be quietly accumulating the token. This accumulation could potentially act as a stabilizing force amidst the volatility.

In contrast, intraday traders appeared to be following the current market sentiment by placing strong bearish bets. Traders were over-leveraged at $14.29 on the lower side and $15.01 on the upper side. At these levels, long positions totaled $3.04 million, while short positions stood at $6.31 million. This indicated that bets on the short side were significantly higher than those on the long side, suggesting that sellers were in control.

According to technical analysis, LINK is poised for significant downside momentum with no sign of an early recovery. The asset has broken down from its key support level, which it had been receiving from both an ascending trendline and a horizontal level of $15. If this downside momentum continues and the price closes a daily candle below the $14.75 level, there is a strong possibility that LINK could drop by 25%, potentially reaching the $10.85 level.

A bullish entry would only be possible if the LINK price reclaims and moves above the $15 and $16 levels. Until then, there are no signs of a bullish reversal. The current market sentiment and technical indicators suggest that LINK is bearish in the shorter term, with traders heavily shorting near the $14.29 support level, which increases the risk of a breakdown below this level.