Categories: Crypto News
| On
2023-12-08 4:51 PM

ChainLink at Risk of Correction as Whales Plan Profit-Taking

  • ChainLink's Potential Price Correction: LINK price may face a correction due to profit-taking by large wallet holders.
  • Impact of Staking Update and Whale Activity: The launch of ChainLink's v0.2 staking pool has led to substantial gains, but large investors might cash in their profits, affecting the price.
  • Current Support Zone and Risks: ChainLink is trading above a crucial support zone, but with most wallet addresses in profit, there's a high chance of widespread profit-taking, which could drive the price lower.
     
By Nonhlanhla

ChainLink (LINK), a prominent altcoin, is at a potential turning point, with the likelihood of a correction driven by profit-taking among large wallet holders. This development is drawing attention in South Africa’s growing crypto market, where investors are keenly observing global cryptocurrency trends.

ChainLink Staking Update and Whale Activity

The recent launch of ChainLink’s v0.2 staking acted as a catalyst, driving significant price gains. However, with large-wallet holders now sitting on substantial unrealized profits, there’s a heightened risk of them cashing in, which could drive the price down. According to a ChainLink tweet posted on December 11, the v0.2 community staking pool is now full with over 40.87 million LINK tokens.

Network Growth Shows Bearish Divergence

On-chain data from Santiment reveals a bearish divergence in ChainLink’s network growth metric, indicating a possible loss of traction or adoption among new market participants. This divergence supports the theory of an impending correction for LINK.

ChainLink Price Above Crucial Support Zone

Currently, ChainLink’s price is above a critical support zone ranging from $14.55 to $15.94, where 38,660 wallets have accumulated $84.1 million in ChainLink tokens. The price of LINK on Binance is at $16.08. However, with 92.49% of wallet addresses in profit, there’s a possibility of widespread profit-taking, which could push the LINK price lower.

Implications for South African Crypto Market

In South Africa, where digital currencies are increasingly popular, these developments within the ChainLink network hold significant relevance. Investors and traders are closely monitoring the situation, as it could provide insights into broader market movements and the impact of large-scale trading activities on altcoin prices. The potential correction in ChainLink’s price serves as a reminder of the volatile nature of the crypto market and the importance of staying informed about key developments and trends.

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Nonhlanhla

Nonhlanhla P Dube is a senior news reporter. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her on: Email: nonhlanhla@rateweb.co.za