Whales Accumulate Chainlink Amid Potential Price Drop

An on-chain analyst has noted a significant increase in investments by large-scale crypto investors in an Ethereum-based altcoin.

Ali Martinez observed that these investors have acquired a substantial amount of Chainlink (LINK) over the past week, with their purchases totaling around $76.88 million, equating to over 6.2 million LINK.

#Chainlink whales have snapped up over 6.2 million $LINK this past week, totaling approximately $76.88 million! pic.twitter.com/Hats1Nmsny

— Ali (@ali_charts) July 8, 2024

Earlier, Martinez had highlighted that Chainlink might be experiencing a downturn following a head-and-shoulders pattern after it fell below the $12 support level. This pattern often indicates a potential for further price drops.

Be careful with #Chainlink! The recent upswing to $13 could have been a retest of the head-and-shoulders pattern’s neckline. https://t.co/rMxsMsOtzp

— Ali (@ali_charts) July 7, 2024

Currently, with LINK hovering slightly above $13, Martinez cautions that the altcoin may be turning a previous support level into a new resistance. The recent rise to $13 might have been a retest of this critical level.

According to Martinez’s analysis, there is a possibility that LINK could decline to approximately $6.80, representing a potential drop of nearly 50% from its current trading price.