Chainlink holders earned 4.13 million LINK available for sale in just two days causing a struggle in the Chainlink price.

The crypto market showed wider price swings while major coins experience movement following the recent LINK selling by whales.

Big investors sell their holdings at this volume because they probably need to protect their wealth or shift assets through market uncertainty.

The records from Santiment show decreased funds in the wallets of major LINK holders who are taking their money out of the market.

LINK experienced failed attempts to sustain support zones as money managers took strong selling positions.

Chainlink Price Drops Over 3% Amid Selling Pressure

LINK lost 3.42% out of its market value after the whale selling phase ended. It was trading at $19.87 as CoinMarketCap data at the time of writing.

A sudden price decline occurred when the market rejected the rise above $20.50 and then pulled back. 

The bear market shows strong from a large 44.79% drop in trading activity that sits at $807.02 million today.

The stock sell-off has led LINK investors to lose confidence as demonstrated by its declining market worth to $12.56 billion.

Despite the market downturn LINK continues as a main component of the cryptocurrency supply chain with 638.09 million LINK in circulation out of 1 billion LINK total and a fully diluted value of $19.69 billion.

Big investors selling will most likely push Chainlink price down unless new buyers come in to buy the released supply.

Technical Analysis: Downtrend Confirmed Below Key Resistance

Chainlink price has experienced a downhill trend after the $26 resistance has failed in the previous weeks.

LINK has declined, and fallen below the $20.50 resistance level, unable to hold above $19.50 – $20.00.

The alligator indicator, by analyzing data to look at trend direction, is seeing an increasing difference between its moving averages, indicating increasing bearish momentum.

The structure confirms a downtrend since the blue (jaw) line lies above the red (teeth) and green (lips) lines.

The Money Flow Index (MFI) of 73.09 indicates that LINK was overbought in its recent correction.

Traders would be looking to see if there is too much downside in the price charts when MFI will range close to 70, which could indicate more price had been given.

Sentiments On-Chain Data paints a picture of declining large holder balances, and 1 million to 10 million LINK holders have been reducing their exposure.

Major investors seem to be taking profits or hedging against potential downside risks by exiting to whale trade.

In the past, whale movements have historically occurred before major Chainlink price movements, in previous market cycles.

If not all retail and institutional investors are strong enough to push the price, it will be dictated by large holders.

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