Chainlink’s price fell 6% to $8.55 on Thursday as cryptocurrency investors remained concerned about a potential escalation in the US-Iran war.
summary
- Chainlink’s price fell about 6% to close to $8.5 as broader cryptocurrency markets declined amid escalating tensions between the United States and Iran.
- The whale pile-up intensified, with top holders withdrawing up to 26,000 links per day, reducing the exchange supply and signaling long-term confidence.
- Technical indicators point to a potential recovery towards $10, although the risk of a short-term drop to $8 remains amid overall uncertainty.
According to data from crypto.news, Chainlink (connection) The price fell 6% to $8.50 on Thursday as the cryptocurrency market fell, in response to news that the United States is preparing for a violent attack on Iran in the next two or three weeks to ensure a decisive victory.
Despite the decline in Chainlink prices, the trend of massive accumulation by whales indicates that major investors remain optimistic about the long-term prospects.
On April 1 mailCryptoQuant’s analysis of the top 10 outflow transactions showed that whales were withdrawing more than 8,000 LINK tokens from Binance daily. Furthermore, the asset’s average monthly outflows increased from 2,000 links to 2,600 links per day.
Whale withdrawals suggest that it is possible to move these funds to cold storage with the aim of holding the tokens for longer periods. The commitment of large holders often arouses interest from individuals and thus boosts the price floor because it tends to reduce the total supply of LINK held on exchanges.
Notably, exchange supply ratio data from CryptoQuant showed a steady decline during the month of February. At the time of writing, the bid-exchange ratio stands at 0.127, near monthly lows, a sign of continued accumulation since mid-February.
Low exchange balances also help address concerns about sudden short-term selling pressures by limiting the supply of liquidity available to traders. Subsequently, it could pave the way for a rapid recovery in prices once macroeconomic tensions ease.
On the daily chart, Chainlink price is forming a double bottom pattern, which is a bullish reversal signal in technical analysis. It is completing the second bottom of the double bottom.
Other technical indicators on the daily time frame appear to favor upward movement. It is worth noting that the Supertrend indicator has turned green. When this signal turns green, it usually indicates that short-term momentum is shifting in favor of buyers.
The Chaikin Money Flow Index also registered a positive reading, indicating that institutional capital is steadily entering the market.
Hence, Chainlink price is likely to rebound to its March 16 high of $10 next. However, it could face a potential drop to $8 amid the broader market decline before rising again.
Disclosure: This article does not constitute investment advice. The content and materials contained on this page are for educational purposes only.
