Chainlink Price Prediction: Assessing Odds Of A Fall Below $12?

Key Insights:

• The daily close on Chainlink was not ideal as it put in a lower low, and the price lost its bullish structure on the daily.
• The whale’s profit-taking sparked more decline.
• Chainlink was the leading cryptocurrency in development activity and oracle provision.

Chainlink price prediction showed that the altcoin ended its session below a key support level. This recorded a low on the daily time frame, breaking its bullish trend.

Chainlink Price Prediction

Looking at Chainlink price prediction analysis, in April and May, $13.30 had supported the price, but it lowered again and broke that support level.

This development made people worry that things could go further south for the sellers. However, the bottoms of March and May had symmetric shapes. That indicated hopes for higher lows, yet the latest prices dismissed that notion.

It may decline further if LINK doesn’t rebound from its $13.30 loss soon. It could return to its previous accumulation range of $12.00–$12.30.

A continued decrease in that zone could result in a decline toward $11. Yet, should the bulls hold their ground at $13.30 by strong trading, they could regain their momentum and move up to $14.50.

The market shifted into a bearish pattern, raising concerns for traders. If it recovers quickly, the region could form a bear trap. The reaction of the next couple of candles would be critical in deciding whether the market would move higher or lower.

Whale’s Profit-taking Fueling Drop in Chainlink Price

The fall in LINK seemed to be linked to 0x7fBB, a whale wallet, taking a large amount of profit. The whale bought 1.75 million LINK from March 2023 to March 2024 at $7.03, adding up to a total of $12.3 million.

By May 2024, the value of LINK increased to about $30, temporarily making unrealized gains of more than $39 million. But since May 27, the whale had moved 403,000 LINK ($5.87 million) to Binance, causing concern for many, and its price started falling.

The wallet had 1.35 million LINK valued at $18.6 million, earning $12 million in profits. LINK’s price decreased by 3.4% in 24 hours, corresponding with what the whale did.

Large drops from similar wallets have previously caused market fluctuations. These wallets played a key role in shifting prices.

Despite ongoing long-term accumulation, sudden, sizable sales intensified volatility. This confirms that whales continue to impact the LINK market.

Chainlink Dominating in Development Activity and Oracle Space

More Chainlink price prediction metrics showed 492 events on GitHub in the past month. This led the Ethereum community in development activity.

Ethereum, Eigen Layer, and Starknet expanded like Chainlink but have lower GitHub involvement and fewer oracles than Chainlink. However, LINK’s strong output levels were higher than those of Starknet, Ethereum, and EigenLayer.

Additionally, Chainlink has the greatest dominance among all oracle providers, at 82.03%. Chronicle stands at 11.25% while RedStone accounts for 3.56%.

Pyth makes up 1.55% while Interlay is 0.85% of the ecosystem. The last 0.76% comprises smaller providers grouped as “Other.”

Chainlink remains dominant in the Oracle business and holds its top position. Emerging players have yet to pose a serious threat to its market leadership.

AAVE users can now access Chainlink integration through Smart Value Routing (SVR). However, this is limited to a restricted portion of AAVE’s total value locked (TVL).

Trials are underway in low-liquidity loan markets, and eventually, it will reach the Ethereum-focused markets where major trading takes place. When full SVR support is introduced to Aave, Chainlink’s usefulness in DeFi may grow and help it keep its dominant role in data delivery.