The cryptocurrency market has certainly struggled in recent weeks. With increased geopolitical concerns and a brewing US trade war, cautious traders have seemingly dominated the market. One coin that has suffered over the last several weeks is Chainlink (LINK). Chainlink is down over 10% in the last month, and LINK whales appear concerned that the drop will continue. These concerns have made whales offload their LINK tokens in bunches.
Indeed, according to CryptoQuant data, the Active Addresses on-chain metric continues to sustain an overall downward trend from its peak of approximately 9,400 addresses in February to roughly 3,200 addresses as of Tuesday. This marks a 66% decline in two and a half months and a 72% drop from the metric’s December peak of approximately 11,400 addresses. Santiment’s data also reveals that between February and mid-April, addresses with between 10 million and 100 million LINK tokens (whales) reduced their holdings by 1.88%. This whale cluster currently holds 46.04% of Chainlink’s total supply.
A sustained decline in Chainlink active addresses suggests low network activity, which may reflect waning user engagement and low confidence in the ecosystem. Thus, LINK price continues to fall. Just how far could the asset crash? Experts are mixed on their answers, but most suggest it’s now or never for LINK to rebound.
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Furthermore, Chainlink’s Relative Strength (RSI) indicator shows that bears have the upper hand and may continue to tank LINK price. Support at $10.00 could be retested if the RSI indicator drops further from its current position at 43.00. Further selling pressure can cause Chainlink to decline towards 1-year lows of $8.
On the other hand, some Chainlink data is still encouraging a potential turnaround on the horizon. According to one analyst, the $12 mark will be critical to where LINK goes next. The analyst marks a key Fibonacci retracement point, as the asset is currently consolidating just above that $12 level. The asset’s daily trading chart has shown a bullish reversal pattern in a falling wedge signal. Moreover, in the event of a breakout from its current position, LINK has $24 potential in the near term.
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