Chainlink whales and sharks struggle to keep the LINK price up

Chainlink (LINK) whale and shark cohorts have played a key role in the token’s November price rally, but with momentum weakening, here’s how the price may react.

Lower volatility and fewer price swings again plagued cryptocurrency prices. Chainlink price lost significantly in the weekly window, down 6.07% in the last seven days.

After charting gains from November to December, the LINK price has now started to move in a downward direction. However, some important on-chain changes taking place on Chainlink may move prices in a different direction.

At press time, LINK was trading at $6.98, down 4.05% on the daily chart. As the LINK price lost the $7 support/resistance mark, some old LINK holders were tempted to move their bags.

Chainlink age consumption indicator highlighted that over 495 million LINK tokens were moved in just one day. The age consumption indicator shows the number of tokens that change address on a specific date, multiplied by the time since they last moved.

On December 6, around 497.3 million tokens were moved, and the continuous movement of old tokens often leads to market volatility. However, lower market volatility can be expected in the near future with increases in age consumption.

LINK Token Age Consumed | Source: Sentiment

Furthermore, LINK also saw higher currency inflows of around 176,000. A sustained increase in inflows can be attributed to the price drop from 1 December onwards.

Chainlink (LINK) Exchange Feed |  Source: Sentiment
LINK Exchange feeds | Source: Sentiment

A December 5 Update from Santiment suggested that Chainlink’s shark and whale addresses with between 1000 and 1 million LINKs have gone on an unprecedented increase of accumulation. These wallets had added a combined 26.8 million LINK worth $194.3 million in just two months, a 12.8% increase of coins in their wallets.

However, some short-term changes in the LINK whale’s behavior can affect price momentum. The aforementioned whale and shark cohort reduced their cumulative holdings by nearly nine million LINK in just the past three days. The same may point to a certain profit-taking in the market by this group.

Supply distribution by balance of addresses |  Source: Sentiment
LINK Distribution of offers by balance of addresses | Source: Sentiment

With this shark and whale cohort being dumped after the LINK pump, another rally could lead to a resurgence of this cohort.

Largest cohort accumulated eight million LINK

However, a look at the largest LINK whale cohort showed that they accumulated around eight million LINK, thus reversing the effect of 1000 to 1 million LINK holders. With LINK whale and shark cohorts fighting to keep the price action alive, the Chainlink price appeared to be at a crossroads.

Going forward, for LINK bulls, it will be crucial to keep the price above the $6.76 mark according to the In/Out of Money Around Price Indicator.

In/out of money around price |  Source: IntoTheBlock
In/out of money around price | Source: IntoTheBlock

At the $6.76 mark, 14,350 addresses held over 281 million LINK tokens. If bulls are able to hold the price above this level, price action may remain in safe territory.

However, with the current market momentum in place, a pullback can be expected. The in/out of the money around price suggests strong support for LINK prices up to the $6.30 mark.

Disclaimer: BeInCrypto strives to provide accurate and up-to-date information, but it will not be responsible for missing facts or inaccurate information. You comply and understand that you should use this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.

Disclaimer

BeinCrypto strives to provide accurate and up-to-date information, but it will not be responsible for missing facts or inaccurate information. You comply and understand that you should use this information at your own risk. Cryptocurrencies are highly volatile financial assets, so do your research and make your own financial decisions.

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