Chainlink (LINK) Token Retreats 13% to $27, But One Whale Keeps Accumulating

Chainlink price experienced a significant reversal and dropped for three consecutive days, erasing some of the gains made last week.

Chainlink (LINK) price faced some selling pressure this week, erasing some of the gains made last week. The LINK token fell to $27, marking a 13% decline from its highest level this year and bringing its market cap to over $17 billion.

However, the selling pressure was evident not just for LINK but also for other major cryptocurrencies. Bitcoin (BTC) dropped to $105,000 from its weekly high of $108,000. Similarly, other popular cryptocurrencies like Ethereum, Ripple, and Solana were also down by over 3%.

Despite the sell-off, one whale continued to accumulate LINK tokens, betting on a potential recovery. According to LookOnChain, the whale withdrew 65,000 LINK tokens, valued at $1.8 million, on December 18. This followed a trend that began four days earlier, bringing the whale’s total accumulation to over $17.3 million.

The whale withdrew another 65,000 $LINK($1.81M) from #Binance 40 minutes ago.

In the past 4 days, this whale has withdrawn a total of 594,998 $LINK($17.31M) from #Binance.

https://t.co/09rrsXqyml pic.twitter.com/H4N9LkW8z9

The accumulation came shortly after Donald Trump’s World Liberty Financial acquired LINK tokens worth over $2 million. The upcoming Decentralized Finance platform has selected Chainlink as its oracle provider.

Chainlink is considered one of the most fundamentally sound projects in the blockchain industry. Its oracle solutions are used by major DeFi protocols like AAVE, Spark, and Compound. The total value secured by Chainlink has grown to over $41 billion, outpacing competitors like Chronicle, Pyth, and Edge.

Meanwhile, the number of Chainlink holders also continued to rise. According to data from IntoTheBlock, there are now over 688,000 addresses with LINK balances, surpassing the 30-day average of 686,000. This increase in Chainlink holders suggests sustained demand for the token.

Chainlink is also set to benefit from its partnership with Swift Network and other large platforms that are utilizing Chainlink technology for tokenization. Additionally, there are talks about the potential approval of a Chainlink ETF by the Securities and Exchange Commission.

Chainlink Price Analysis

The 4-hour chart shows that LINK price peaked at $30.95, forming a small triple-top chart pattern—a bearish signal. It has since declined and dropped below the pattern’s neckline at $27.58.

Currently, Chainlink is trading slightly above the 23.6% Fibonacci Retracement level at $26. It has also fallen below the middle line of the Andrew’s Pitchfork tool and the 50-period moving average.

Therefore, the coin will likely continue rising ahead of the Federal Reserve decision. If this happens, it may drop to the next psychological level at $25 and then bounce back as investors buy the dip.