Chainlink's ($LINK) prices are under pressure due to the activity of large investors and the testing of key support levels.
Whale Activity and Price Decline
In the past three weeks, whales have sold over 170 million LINK tokens. This activity correlates with the price decline observed since March 4. Despite an initial price surge, it could not hold and fell back to $12.98 on April 3. Meanwhile, large wallet holdings remained relatively stable, indicating that the price drop might be more attributed to retail investor activity.
Testing a Crucial Trendline
Currently, a long-term rising trendline that has been supporting LINK's price since July 2023 is being tested. If the price drops below this trendline, it could result in further declines. However, if the trendline holds, it could serve as a basis for a subsequent price increase.
Outlook for Chainlink
The current price of LINK is approximately $12.93, aligning with an important trendline. The next movements in LINK's price will heavily depend on the behavior of this support line. If it breaks below, further drops may occur, whereas sustaining above could trigger a rebound.
In conclusion, Chainlink is at a critical point where the actions of large investors and the behavior of key trendlines could significantly impact future price movements.
