Chainlink whales go into buying spree while technicals suggest LINK price could drop to $12

Chainlink price is bounded inside a major ascending parallel channel formed since September 23.
It is currently trading right in the middle of the pattern which means a breakout will not happen any time soon.

Unlike most of the top cryptocurrencies, Chainlink established its all-time high in August 2020 at around $20. The digital asset plummeted to $7.4 before recovering and touching $16,39 on November 24.

Chainlink price remains stable but could be on the verge of a big move

On the 4-hour chart, Chainlink has established an ascending parallel channel since September 23 and it’s trading right in the middle of it. The upper trendline is all the way at $17 and the lower boundary at $12.

LINK/USD 4-hour chart

The TD Sequential indicator has just presented a sell signal. In the past, these sell signals have been extremely accurate which indicates LINK is on the verge of a breakdown. The 100-SMA is acting as a strong support level. Breaking below this moving average can quickly push Chainlink price towards the 50-SMA at $13.3 and the lower boundary of the parallel channel at $12.

LINK/USD 4-hour chart

On the other hand, according to recent statistics provided by Santiment, it seems that the number of Chainlink whales continues to grow in the past month. This indicates that large investors are still extremely interested in the digital asset despite being having a lower value.

https://t.co/w0E1mpn3fD

The amount of high-end #Chainlink investors continue to grow, according to our 'Holder Distributions' data. There are 445 more addresses holding 1,000 or more $LINK (currently at least $13,950), compared to last month. The behavior of whale holders pic.twitter.com/0LG5MSRXWl
— Santiment (@santimentfeed) December 3, 2020

If the bulls can hold the 100-SMA support on the 4-hour chart, the sell signal would be invalidated and Chainlink price can quickly climb towards the upper boundary of the ascending parallel channel at $17.

Share: Cryptos feed

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.