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.
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.
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.
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.
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.