The cryptocurrency market has been witnessing a phase of volatility, with Chainlink (LINK) being one of the coins experiencing significant price fluctuations. According to the latest data, Chainlink price retracted 5% on Thursday, June 20, 2024, as bulls failed to sustain the 10% rebound recorded 48 hours prior. On-chain data reveals that whale investors offloading their holdings could be behind the latest pullback.
Chainlink Dips 5% as Bears Halt Rebound Phase
Chainlink price entered double-digit gains between June 18 and June 19, as the US Securities and Exchange Commission (SEC) dropping investigations into Ethereum triggered a brief rebound phase across the crypto markets. However, as the US S&P 500, led by chip-manufacturing giant NVIDIA, surged to new peaks on Wednesday, it attracted the attention of savvy crypto traders, some of whom appear to have now redirected the short-term gains toward the roaring stock markets.
Chainlink Whales Offload $40M as SEC Ends Ethereum Investigations
The latest price data shows LINK wobbled 5% within the daily timeframe as it rapidly retraced toward the $14 territory at the time of writing on June 20. Looking at the underlying on-chain data, it appears that Chainlink whale investors took advantage of the brief market recovery to the stage and offloaded some of their holdings. The Sentiment chart tracking real-time changes in the balance of LINK tokens held by Chainlink’s top 1,000 largest whale wallets shows that the top 100 whale wallets sold off about 2.25 million LINK tokens between June 17 and June 20, valued at approximately $40 million.
Chainlink Price Forecast: $13 Support at Risk Again
Despite the 5% correction toward $14.2, Chainlink’s price is still a healthy distance from the weekly timeframe bottom of $12.98 recorded on June 18. However, when whale investors sell off such a large amount of coins within a short period, it sends bearish signals to other strategic retail traders within the ecosystem. Having breached the $13 support earlier in the week, bears could now target a much larger downswing toward $12.
“Such a rapid selling trend among whale investors is often regarded as a major bearish signal.”
According to the IntoTheBlock’s GIOM chart, LINK bulls will likely move the support buy-wall toward the $12.40 area, where 59,180 active addresses had acquired 67.88 million LINK at the average price of $12.43. If this support buy-wall caves in, Chainlink’s price could experience further downside toward the $11 mark.
On the flip side, bulls could gain a foothold in the markets again if Chainlink can reclaim the $15 psychological resistance in the days ahead.
