Chainlink bleeds as whale offloads $11mln: What’s next for LINK?

• Whale address 0x33f7 dumped 722,416 LINK worth $11.11M on Binance, accelerating LINK’s price breakdown.
• LINK broke below both its ascending trendline and $15 support; further downside may target the $10.85 level.

Chainlink [LINK] flashed a strong bearish signal with no signs of an early recovery, as the price continues to bleed for the third consecutive day.

Amidst the uncertainty, a crypto whale has been found dumping millions of dollars worth of LINK tokens, which seems to be accelerating the downward momentum.

Crypto whale dumps $11.11 million of LINK

On the 30th of May, Lookonchain made a post on X (formerly Twitter) that address 0x33f7 had dumped 722,416 LINK tokens worth $11.11 million to Binance, the world’s largest cryptocurrency exchange.

This substantial token dump occurred as the price broke down a key support level and the price action turned bearish.

At press time, LINK traded at $14.50, down 8.25% in the past 24 hours. Meanwhile, Trading Volume surged 45%, pointing to panic exits and leveraged plays entering the market.

$3.37 million of LINK outflow signal accumulation 

Looking at this dip, some investors and long-term holders appeared to be seizing the opportunity by accumulating the token, according to CoinGlass. 

Spot Outflow data showed $3.37 million worth of LINK tokens exited exchanges over the past 48 hours.

Naturally, this type of movement hints at quiet accumulation by long-term holders, potentially a stabilizing force amid the volatility.

$6.30 million worth of bearish bets 

Whereas, intraday traders seem to be following the current market sentiment by strongly betting on the bearish side.

So far, traders are over-leveraged at $14.29 on the lower side (support) and $15.01 on the upper side (resistance). At these levels, long positions totaled $3.04 million, while short positions stood at $6.31 million.

This indicated that bets on the short side are significantly higher than the long ones, which means sellers are in control.

When combining these data, it appears that LINK is bearish in the shorter term, as traders are heavily shorting near the $14.29 support level, which increases the risk of a breakdown below this level.

Chainlink price action and key levels 

According to AMBCrypto’s technical analysis, LINK appears bearish and is poised for significant downside momentum, with no sign of an early recovery.

With consecutive red candles, the asset has broken down from its key support level, which it had been receiving from both an ascending trendline and a horizontal level of $15.

Based on historical patterns, if this downside momentum continues and the price closes a daily candle below the $14.75 level, there is a strong possibility that LINK could drop by 25%, potentially reaching the $10.85.

However, a bullish entry would only be possible if the LINK price reclaims and moves above the $15 and $16 levels. Until then, there are no signs of a bullish reversal.