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LINK Stock Price Forecast: Are Whales Pointing to a Possible Correction?

It was the price of a currency Chain link LINK has been trending upward over the past few weeks, with an apparent slowdown over the past 48 hours.

However, what's even more interesting is that whales have long been signaling an impending correction that could arrive soon.

LINK coin price recently reached the resistance level of $21.69, marking a 25-month high. The Oracle token corrected shortly after after falling 5.66% year to date. At the time of writing, LINK is trading at $20.47.

Given this, a decline is likely and investors may behave the same way. Whaling investors, in particular, have been reporting a downward trend for some time now. Securities with between 10,000 and 100,000 LINK have been selling regularly since the beginning of February. In a month and a half, its supply had decreased by almost 2 million LINK worth more than $40 million.

Chainlink whale supply.
A Chainlink whale is on display. Source: Feeling

These whale headlines have historically proven to be a strong signal of a trend reversal, as rising prices followed accumulation and selling led to corrections. This makes its recent sell-off an indicator of what's to come.

Additionally, whales greatly influence LINK's price action precisely because approximately 69% of the total circulating supply of LINK tokens for this group is in wallets. The remaining 31% of the supply is distributed between fishmongers and small wallets.

Chain link supply distribution.
Chain link supply distribution. Source: In the block

Today, a drop in prices is expected and has not yet arrived because sales are not as large and sudden as in the past. This has led to a bearish divergence, which will be corrected as soon as LINK notices a decline.

As the price of Chainlink slowly increases, we can see that the altcoin is losing its upward momentum over shorter time frames. This is verified by the negative signals shown by the Moving Average Convergence Divergence (MACD) indicator.

The MACD indicator tracks the relationship between two moving averages of a security's price. It helps identify trend direction, momentum, and potential buy or sell signals by measuring the difference between the short-term moving average (indicator line) and the long-term moving average (indicator line). signal).

At the time of writing, the indicator is observing a bearish crossover with the red candles recorded on the chart. The 50-day EMA (red) is currently also above the candle. This is a short-term bearish signal, indicating that LINK could likely drop to $20.12.

LINK/USDT 4-hour chart.
LINK/USDT 4-hour chart. Source: Trading View

If the bearish sentiment has a significant impact on Chainlink price, it could fall further to test the support level at $19.22.

However, the 100-day EMA (green) acts as a support line for LINK. The Oracle token could continue above the $20.12 level if it prevents a significant decline. Additional support from retail investors could reverse the downward trend. This would invalidate the bearish thesis by pushing the altcoin above $21.

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