ChainLink
LINK prices slide – Who pressed the sell button?
Though selling pressure pulled LINK down, the plunge may have been temporary. Here’s why.
- A bankrupt lending platform sold $46.5 million LINK tokens.
- The CLLD spiked in the negative direction, indicating a possible rebound.
Chainlink’s [LINK] price dropped by 3.86% in the last 24 hours, according to data from CoinMarketCap. For a token that a sizable part of the market expects to hit $30 soon, this pullback could be challenging. However, LINK was not the only top token whose price slid.
Data from the price tracking platform showed that Solana [SOL] and Cardano [ADA] also fell. But out of the top 20 cryptocurrencies in terms of market cap, Chainlink was the second worst-performing asset within the period.
Who pressed the sell button?
Meanwhile, AMBCrypto was able to find out one of the reasons for the decline.
According to an assessment of transactions on Etherscan, it was found that BlockFi sent different tokens worth $48.37 million to Kraken. For context, BlockFi is a bankrupt crypto-lending platform that winded down operations last year.
Out of the total cryptos liquidated, LINK’s share was worth $46.5 million. This indicated other assets sold were not worth much. Apart from this, there were other factors that caused LINK prices to fall.
In the last 30 days, LINK’s price has increased by 20%. Therefore, it is likely that some market participants were booking profits.
Furthermore, AMBCrypto assessed Chainlink’s volume to assess if others were also selling.
According to the data we got from Santiment, the volume had increased to 569.48 million. This increase was proof of a hike in buying and selling. Since LINK’s value decreased, it suggested that there were more sales than accumulation.
Source: Santiment
If the volume continues to increase
while the price shrinks, then LINK might plunge toward $17. But if the price rebounds toward $20 while volume surges, a move in the $25 direction could be next.LINK may be set to bounce
When we checked the Liquidation Levels, AMBCrypto observed that there was a cluster of liquidity at $22.5 and above. Liquidation Levels are estimated price levels where liquidation events might occur. From the look of things, Chainlink might rise toward the confluence.
But as the price proceeds in that direction, traders with high-leverage positions might hit stop loss. Also, when we checked the Cumulative Liquidation Levels Delta (CLLD), we noticed that the value was negative. Typically, positive values indicate that there are more long liquidations.
Therefore, the negative reading at press time suggests that more shorts have been liquidated. Further, the CLLD spike in the negative direction could be a bullish signal for LINK.
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This was because the price decline could bring about late shorts who might want to profit from the dip.
Source: HyblockCapital
But in most cases, these shorts might already be late. In turn, this could fuel a rebound. If this is the case, then LINK’s decrease could be short-lived and its recovery in the coming days might be sharp.
