Ever since Trump’s tariff war was reinstigated, the crypto markets have shaken a bit. The star token Bitcoin price faced massive upward pressure, dragging the levels below $79,000. Besides, the Chainlink price also plunged from the local highs at $17 to $13, while the bulls quickly triggered a strong rebound. This may suggest a rise from a bearish influence, but in the wider perspective, bearish clouds continue to hover over the LINK price rally as the token has yet to enter the demand zone.
Does this suggest Chainlink may validate a fakeout? Will the LINK price drop below $10?
The LINK price gained immense attention ever since it broke out from the prolonged consolidation in 2023. Since then, the price has maintained a healthy ascending trend and marked interim highs above $30. However, the bullish dominance over the rally faded, causing the price to plunge close to $13. Currently, the price has triggered a rebound from the lows, but a couple of factors suggest the price is still under massive bearish pressure.
Data from Santiment suggests the whales have halted accumulating LINK, which raises concerns over the next price action.
The above chart shows that the supply held by the top LINK addresses has halted accumulating the tokens since mid-December. Before this, the whales had been constantly accumulating the tokens and a sudden halt in the accumulation suggests the decrease in the confidence of the whales. Currently, the top 5 wallets are holding nearly 18.15% of the entire supply, worth nearly $2.93 billion. Meanwhile, it may also be considered as the whales stacking the tokens, aiming to prepare for a big move.
Will LINK Price Rise Above $20 or Drop Below $10?
The LINK price has been forming constant lower highs and lows, indicating the rising strength of the bears. Although the bulls have triggered a bullish rebound, the price continues to remain under bearish influence until the token does not clear a pivotal resistance zone. The price rose above $16.5 in the early trading hours but quickly faced a 5% pullback, suggesting a strong presence of the bears.
The price has triggered a strong rebound but is expected to trade within a consolidated zone. The DMI is preparing for a bullish crossover, but the ADX is preparing for a bearish divergence. Besides, the RSI remains elevated, hinting towards the growing strength of the rally. On the other hand, the volume remains restricted below the average levels, hinting towards a drop in the volatility. Therefore, the Chainlink (LINK) price is believed to accumulate within a narrow range for a while and may trigger a bullish rebound once the buying pressure increases.
Although the bullish potential remains lower, the LINK price is not subjected to dropping to $10 as the market sentiments have not turned completely bearish. Therefore, after choppy behaviour, the Chainlink price is believed to trigger a huge breakout to $20.
