Recently, Chainlink (LINK) price movement has been under pressure, maintaining a significant downtrend since late August, and on the technical side, it is gradually approaching the confirmation of a typical bearish double top pattern. Meanwhile, on-chain data shows that whales have started to continuously reduce their holdings of LINK, further reinforcing the market's bearish expectations. It cannot be ruled out that LINK may experience a pullback of over 50% in the future.
According to the data, as of December 23, the price of Chainlink is approximately $12.49, with a market capitalization of about $8.84 billion, a pullback of about 16% from this month's peak, and a cumulative fall of nearly 55% from the year's high. The overall downward trend is closely related to the macro environment, including market uncertainty regarding U.S. tariff policies and concerns over the Federal Reserve's tight interest rate stance, leading to a continued decline in risk appetite in the cryptocurrency market.
From a fundamental perspective, the activity level of the Chainlink ecosystem has obviously weakened. DefiLlama data shows that the total locked value (TVL) of DeFi applications based on Chainlink has significantly dropped from about $1.13 billion at the end of August to approximately $545 million currently. At the same time, since September, the weekly fees generated by relevant protocols have continuously declined, reflecting a slowdown in the actual demand for Chainlink's oracle services. This dual decline in usage and revenue further undermines investor confidence.
The on-chain capital flow is also unfavorable. Nansen data shows that in the past 7 days, the total amount of LINK held by Whale addresses has decreased by about 2%, dropping to 1.84 million. Meanwhile, the LINK balance on exchanges has increased by about 2.7%, reaching 226.73 million, which is usually seen as a signal of rising potential selling pressure that may continuously suppress the price.
From a technical analysis perspective, the LINK weekly chart is forming a multi-year double top structure, with the top area around $28 and the key neckline support at approximately $11.08. Once the price effectively falls below this level, historical experience shows that it often triggers a deeper trend decline. The current MACD has crossed bearish and continues to move downward, while the RSI has dropped to around 37, not yet entering the oversold area, indicating that there is still potential for further decline in the short term.
Overall, if the support at 11 dollars is lost, the price of Chainlink may further drop to 8 dollars, and even test the 5 dollar area, which had formed an important bottom from 2022 to 2023. For investors focusing on Chainlink price movement, LINK technical patterns, and the DeFi oracle sector, it is crucial to remain highly vigilant of the downside risks at this stage.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
QCP: BTC Oscillates Near $74,000; Multi-Country Central Bank Rate Decisions Key This Week
QCP Capital analysis indicates that BTC price is maintaining around $74,000, with a lack of upward momentum. Although the overall crypto market remains under pressure, the declines are relatively controlled. Central bank policy meetings throughout the year will influence the market, as high oil prices have lowered expectations for rate cuts, and the interest rate environment has weakened support for crypto assets. Until policy and geopolitical situations become clearer, a volatile pattern may continue.
GateNews12m ago
Analyst: The overheated bubble of Bitcoin (BTC) has been absorbed, but selling pressure still remains.
On-chain analyst Axel's research report indicates that the Bitcoin market has returned to a neutral range, but overall remains in a loss state with unrelenting selling pressure. The MVRV Z-Score shows that valuation bubbles have dissipated; however, aSOPR has remained below 1.0 for 55 consecutive days, indicating sustained selling pressure. Axel emphasizes that the key to the market lies in whether selling pressure will be exhausted, requiring observation of whether aSOPR can stabilize above 1.0.
動區BlockTempo44m ago
Citigroup Slashes Bitcoin and Ethereum 12-Month Price Targets, Citing Stalled U.S. Crypto Legislation Weighing on Upside Catalysts
Citigroup has lowered its 12-month price targets for Bitcoin and Ethereum, signaling a shift toward caution on the cryptocurrency market's medium-term outlook, primarily due to slow progress in U.S. crypto asset legislation. Bitcoin's target was reduced from $143,000 to $112,000, while Ethereum's fell to $3,175. Despite upside potential remaining in the future, the lack of new policy catalysts suggests prices may oscillate within a range in the near term. Citigroup's assessment of Ethereum is more cautious, as it believes the asset is more significantly impacted by on-chain activity.
区块客1h ago
Bitcoin Holds Strong at $70,000! On-Chain Data Reveals "Collective Selling Wave," Retail Investors Emerge as Biggest Selling Pressure
Under Middle East geopolitical tensions, Bitcoin faced widespread selling pressure, particularly from retail holders. According to Glassnode data, the market is experiencing heavy selling pressure, with the accumulated trend score declining to 0.04, indicating that retail and small-to-medium investors are reducing their positions significantly. Despite this, Bitcoin's resilience against the decline has surprised market observers.
区块客1h ago
ENJ Rockets Past $0.027 — 23% Surge Signals Momentum
Enjin Coin has surged 22.96% in 30 minutes, reaching $0.02737, reflecting increased trading activity and market interest. With a 24-hour change of +43.30%, traders are monitoring support at $0.025 and resistance at $0.030, suggesting potential trends ahead.
Coinfomania1h ago
Ethereum Returns to $2,300: Whales Accumulate 540,000 ETH, Exchange Inflows Drop to 10-Month Low
Ethereum's price rebounded above $2,300 on March 18, primarily driven by whale purchases and net exchange outflows. On-chain data shows investors have reduced their selling pressure, with supply tightening. Technical indicators reveal short-term resistance at $2,380 to $2,400, with support near $2,320. The futures market is also displaying positive signals.
GateNews1h ago
