- Chainlink saw dormant circulation spikes from long-term holders after the rejection at $30.
- The lack of conviction from large holders meant the rally was unlikely to continue.
Chainlink (LINK) experienced a “Trump Pump” earlier this month, leading to a 21% surge in a single day when Trump-affiliated World Liberty Financial (WLF) purchased $1 million worth of LINK tokens .
Over the past two weeks, some on-chain metrics have indicated increased selling pressure from whales. The price move to $30 was used to secure profits.
Can we expect Chainlink to build above $20 and resume bullish momentum?
Rise in whale trading sparks fear
Source: Santiment
Towards the end of November, as LINK prices rose above the $20 mark, the number of whale transactions over $1 million began to increase.
This increased whale trading activity persisted while Chainlink traded above $22.
In the last two weeks it started to pull back, but there were two major trading days that were the second and third highest days in the last three months.
They occurred on December 20 and 26.
The latter came when LINK saw its price rebound to $25. This indicates increased panic among large holders and a slight increase in selling pressure over the past ten days.
The increase in daily trading of whales was of the same magnitude as that of the second half of 2021, supporting the idea of profit taking on whales when the rally did not continue.
Chainlink continues to chase liquidity pockets south
Source: Coinalyse
The liquidation heatmap for the past two weeks highlighted the steady decline in LINK prices. Especially over the past week, the trend has been steadily bearish.
Realistic or not, here is the market capitalization of LINK in terms of BTC
Pockets of liquidity formed below short-term support zones, but they could not keep the bears away for long.
If this trend continues, the $20 level, which rebounded on December 30, could pull prices down in search of liquidity, fueling further decline.
