Despite forging new partnerships and launching innovative services, Chainlink’s native token LINK is facing challenges as whales begin to offload their holdings. Over the past year, LINK has experienced significant price gains, reaching a high of nearly $16.4 in June 2024 from $6.07 in June 2023. The project’s efforts to expand its ecosystem and use cases have contributed to this surge in price.
One of Chainlink’s recent partnerships with Suku aims to accelerate blockchain money transfers globally by leveraging Oracle solutions and technical support. Additionally, the launch of the Cross-Chain Interoperability Protocol (CCIP) on Gnosis has allowed users to perform cloud computing functions and interact across different blockchains while reducing gas fees.
Despite these positive developments, there has been a noticeable decrease in the USD balance held by LINK whales. Whale holdings have dropped from $550.56 million to $464.65 million, representing a decrease of approximately 15.6%. When measured in LINK terms, this reduction becomes even more significant, with whale holdings decreasing by around 70.9%.
This decrease in whale holdings, along with the formation of a bearish technical setup known as the ‘descending triangle,’ suggests that LINK may face further price drops in the future. Market analysts view the descending triangle as a bearish continuation signal, indicating that selling pressure is intensifying and overpowering buyers.
If the bearish pattern is confirmed, LINK’s price could drop by nearly 52% to reach a projected target of around $7.4. The shift in investment strategies by LINK whales, combined with the technical setup, could pose challenges for the Chainlink token in the coming days.