Chainlink Price Faces 18% Drop as Whales Eye These Buy Levels

Chainlink price is currently facing indecision, with investors divided between bagging more tokens and offloading before the inbound 18% crash. However, several whales on centralized exchanges are playing the long game and have set their buy limit order at crucial price points in anticipation of the price drop. Chainlink’s fundamental sentiments remain bullish, increasing the adoption of its technology across DeFi and TradFi institutions.

Extended Chainlink Price Drop Likely

LINK price hovered around $10.37 during the New York trading session, a 1.8% drop in the last 24 hours. Looking at the Chainlink price chart, the overall trend appears to be downward, as indicated by the 200 EMA (black line) positioned well above the current price level. 

The price of LINK has been struggling to break above the 50 EMA (green line) and 21 EMA (red line), which are acting as dynamic resistance levels. Nevertheless, if bears succeed in their push for lower prices, LINK may find support around $9.00, marked by previous lows.

Chainlink price action shows indecision, with small-bodied candles forming near the apex. This typically indicates a potential breakout, though the direction is uncertain.

However, the daily timeframe chart shows the bear pennant forming. As part of this bearish pattern, the symmetrical triangle has a higher chance of breaking to the downside, which could lead to further bearish sentiment. 

The Relative Strength Index (RSI) is neutral, around 50, adding to the consolidation view, which states that the market is neither overbought nor oversold.

The 21 and 50 EMA are close to each other, signaling that the market is consolidating. Chainlink price prediction shows that a breakout above these moving averages could trigger a bullish move, invalidating the bearish thesis if the price breaks and maintains above the 200 EMA ($11.90).

Whales Are Getting LINK at These Prices

While the general market panics over the recent Bitcoin volatility with recent analysis predicting BTC price may slip to $54,000, whales are picking lucrative prices to add more LINK tokens to their portfolios. This Liquidation Map (LM) from Coinglass shows that the cumulative Short Liquidation Leverage is significantly larger than Longs. This means more traders are Shorting LINK on Futures. 

The difference between Shorts and Longs reveals that bearish sentiment dominates the Chainlink market because traders anticipate further downside potential.

A deeper analysis of the LM reveals that the majority of traders who are Long have placed their buy limit orders around $10.17, $9.91, and $9.32. These buy-limit order prices belong to traders who are 50X, 25X, and 10X Leverage Long on Chainlink.

A look at the Liquidity Order Books sheds more light on where whales have lain their traps. According to Coinglass data, over  $2.77 million worth of whale buy limit orders have been placed between $8.00 and $9.00, meaning Chainlink will likely experience a rebound if it drops to that price.

In summary, Chainlink price is currently in a downward trend, mostly due to Bitcoin volatility, but both retail and whale investors are bullish, leading them to place large buy limit orders between $8 and $9. This may present a lucrative buy-in opportunity that aligns with smart money investors.