Chainlink weakens as whales sell off 11 million USD: what will happen to LINK?

Chainlink (LINK) has signaled a strong fall without signs of an early recovery, as the price continues to weaken for the third consecutive day.

Amidst the instability, a whale wallet has been spotted dumping millions of USD worth of LINK tokens, and this seems to be accelerating the fall.

Whale sells off 11.11 million USD LINK

On May 30, Lookonchain posted on X (previously Twitter) that the address 0x33f7 had liquidated 722.416 LINK tokens worth 11.11 million USD on Binance, the world's largest cryptocurrency exchange.

This token sell-off occurred when the price broke through a key support level and the price movement turned negative.

Currently, LINK is trading around $13.6, falling over 8% in the past 24 hours. Meanwhile, trading volume has surged by 45%, indicating panic selling and leveraged trading activities entering the market.

3.37 million USD LINK flows out of the exchange – Accumulation signal

According to CoinGlass, looking at this fall, some investors and long-term holders seem to have seized the opportunity by accumulating tokens.

Source: CoinGlassThe on-chain data shows that $3.37 million worth of LINK has exited exchanges in the last 48 hours.

Of course, this movement refers to the quiet accumulation of long-term holders, which could be a factor in stabilizing prices amidst volatility.

6.30 million USD bet fall

Meanwhile, day traders seem to be monitoring the current market sentiment by heavily betting on the downside.

So far, traders are using excessive leverage around $14.29 on the support side and $15.01 on the resistance side. At these levels, the total Long positions amount to $3.04 million, while the Short positions record a total volume of $6.31 million.

This indicates that the bets on short orders are significantly higher than on long orders, meaning that sellers are in control of the market.

Source: CoinGlassWhen combining the data, it seems that LINK is signaling a short-term price fall, as traders are heavily participating in shorts near the support level of $14.29, increasing the risk of the price falling below this level.

Price trends of LINK and important levels

According to technical analysis, LINK seems to be weakening and preparing for a strong fall, with no signs of early recovery.

Source: TradingViewWith consecutive red candles, the asset has broken through the important support level around $15.

Based on past patterns, if the downtrend continues and the daily close is below $14.75, there is a very high chance that LINK will fall 25%, returning to $10.85.

An increase in price can only occur if the price of LINK recovers and moves above the levels of $15 and $16. Until then, there are no signs indicating that a bullish reversal will take place.

Vincent