Key Takeaways
- Over 300,000 LINK tokens were moved to exchanges on May 18, indicating increased selling pressure from holders.
- Similar inflow spikes in May led to sharp declines, suggesting the current setup could result in further downside.
- LINK’s price has failed to break resistance at $17.61, $16.36, and $15.92, indicating a possible extended correction.
Chainlink (LINK) ‘s price could be on the brink of surrendering to $10 after being rejected over the weekend. However, the altcoin’s rejection is not the only red flag.
On-chain analysis shows that many LINK holders moved hundreds of thousands of coins to exchanges over the weekend. This suggests that bears are active again, and Chainlink’s token price could be under intense pressure.
Chainlink Sees Sell-Offs
According to Santiment data, Chainlink’s exchange inflow spiked to 300,000 tokens on Sunday, May 18, just as LINK faced rejection near $16 and started to fall.
This surge signals a clear intent to sell, as holders moved large amounts from self-custody to exchanges. Rising exchange inflows most times trigger downward pressure, and this trend suggests LINK isn’t done sliding.
You’ll Want To See This
If the inflow had dropped, the sentiment would have been bullish, and the Chainlink token price might have displayed strength. However, this lack of restraint from sellers leaves little room for a bullish turn, at least for now.
A closer look at the metric reveals that LINK could be following the pattern from May 16. During that period, the exchange inflow surged by about 600,000.
By the next day, LINK’s price had dropped from $17 to $15. Therefore, if history repeats and more tokens keep hitting exchanges, the altcoin could soon see a lower value.
Furthermore, an examination of the daily chart shows that Chainlink’s price has faced rejection at three key zones lately. First, it was the $17.61 resistance.
Later, it failed to break the $16.36 roadblock while struggling to move past $15.92. Historically, when a cryptocurrency fails to breach these hurdles, an extended correction could follow.
For instance, in March, the cryptocurrency got rejected by nearly $15.92. In less than two weeks, the Chainlink price dropped to $10.35.
With the red line of the Supertrend above the current value, LINK is unlikely to see a breakthrough past $17 anytime soon.
LINK Price Analysis: Bearish Pressure
The technical setup on the daily chart was not notably different. As seen below, the Moving Average Convergence Divergence (MACD) has dropped to the negative region.
This decline indicates bearish momentum, especially with the formation of a bearish crossover. For context, the bearish crossover occurred as the 26 EMA (orange) climbed above the 12 EMA (blue).
If this trend remains the same, Chainlink’s price might fall below the support level of $14.98. If that happens, LINK’s next target might be a correction toward $10.05.
Alternatively, if bulls defend the $14.98 support and buying pressure increases, this forecast might not pass.
In that scenario, LINK’s price might break the resistance at $18.03 and rally above $20.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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