Chainlink is considered to be one of the safer assets when it comes to investment. This is because of its use cases. But with the decline in price, those use cases are not enough to keep the boat afloat. And, the investors are now realizing it.
Chainlink needs a hand
Falling by 10.45% in the last four days, LINK failed the second opportunity in three months to rebound from the current lows. Trading at $7.09, LINK noted a downfall after nearing the 23.6% Fibonacci level that rested at the $8.35 mark.
Chainlink price action | Source: TradingView – AMBCrypto
This recovery is crucial for a lot of investors who have been waiting for profits, starting with the 15.45k addresses, which have been holding their supply since the coin hit the all-time high back in May 2021.
As these holders bought their LINK in and around 20% of the all-time high (ATH) price, their investment will turn into profit only when LINK is back anywhere close to $52.
Chainlink all-time highers | Source: Intotheblock – AMBCrypto
If that doesn’t happen, there may not be a lot of conviction left in the investors. And, they might resort to other options, including liquidating their holdings. Some hints of the same have been visible for a while now.
While selling has been consistent for over 14 months now, it has never been excessive. However, towards the end of June, the investors’ intention toward LINK changed from accumulation to potential liquidation.
The sudden movement of tokens between addresses highlighted the growing impatience of the investors.
Chainlink mean coin age | Source: Santiment – AMBCrypto
This might lead to a slower recovery since external developments aren’t doing much for the token at the moment. For example, the 10.45% drawdown mentioned above came in the same duration as Chainlink’s most recent milestone, where the network managed to integrate over 100 projects in the Chainlink Keepers ecosystem.
Thus, looking at the current state of the altcoin, it does seem to be that regardless of any upcoming recovery, the token holders will face a tough time in recouping their losses. And, until then, they are most likely destined for destitution.
