In the past few weeks, Chainlink’s price performance has been downright lackluster as the cryptocurrency failed to gain serious momentum as investors largely shifted from altcoins to bitcoin.
This trend shows few signs of easing anytime soon as most of the major altcoins are all stagnating as BTC continues to show signs of strength.
Until BTC enters a prolonged period of consolidation or wears off, there is a high probability that it will continue to gain dominance over the market.
While this short-term trend is bearish for altcoins like Chainlink, the data seems to suggest that the cryptocurrency is fundamentally healthy like never before.
According to an analytics platform, Chainlink could be well positioned to see a massive upward trend due to an ongoing accumulation trend among smaller network participants.
They also note that while the price has significantly undercut BTC and other altcoins such as Ethereum, the largest whales remain strong and “no obvious whale sell-offs in sight”.
This could mean that after a rotation of capital from Bitcoin to Altcoins, LINK is leading the indictment and is seeing a massive upward trend.
Chainlink stable in the lower region of $ 11.00 when altcoins are consolidated
Altcoins have expanded their consolidation trends despite the recent strength of Bitcoin and even Ethereum.
Chainlink is a prime example of this as the cryptocurrency is trading sideways around its current price of $ 11.25. Trading took place here in the last week.
It appears to be facing some resistance in the upper region of USD 11.00 as it found massive resistance here which slowed its rise and caused it to slide back into its support region of USD 11.00.
Analytics company: LINK Whales HODL Strong as New Addresses Spike
Despite Chainlink’s weak price performance recently, the cryptocurrency whales are holding up strong and showing no signs of folding anytime soon.
In addition, an analytics company recently found that the number of new addresses holding and buying LINK has increased recently.
“A year ago, Chainlink’s top 10 whales had 70.7% of LINK’s total circulating supply. At the end of 2020, they now hold 64.5%. This is due to the fact that new addresses are constantly being created on the network and there are no obvious whale sales in sight. “
Image courtesy of Santiment.
The coming days should shed some light on how Bitcoin’s price development will affect Chainlink and other altcoins.
Featured image from Unsplash. Price data from TradingView.