Chainlink plunges 3-month high as LINK price eyes another 50% correction

LINK could drop near $4 by December 2022 given its failure to close above a key resistance level despite a heavy accumulation of whales.

Altcoin Watch

Chainlink’s LINK (LINK) token returned to mimic the broader crypto market downtrend as its price fell alongside major coins Bitcoin (BTC) and Ether (ETH) on November 8.

LINK dipped as much as 10% on the day to hit $8, while BTC and ETH fell around 6.5% and 9%. This contrasts with the trend seen on November 7, where LINK rose 14% to $9.25, its three-month high, while BTC and ETH fell 1.5% and 0.5%, respectively.

LINK /USD 2 hour price chart. Source: TradingView

Overall, over a week-to-date period, LINK has outperformed both Bitcoin and Ether.

What makes Chainlink stronger?

LINK's price rebounded nearly 75% after hitting a low of $5.29 in May. Notably, the Chainlink token's recovery rally coincided with a persistent increase in supply held by its whales (entities holding at least 1,000 LINK).

The percentage of LINK supply held by addresses with a balance between 1,000 LINK and 1 million LINK increased from 18.2% in May to almost 23% in November, according to data from Santiment. This indicates that wealthy investors may have been the main players in the LINK price rally.

LINK distribution of supply between addresses holding 1,000 to 1 million tokens. Source: Santiment

Interestingly, the LINK staking trend is up in the days leading up to the launch of "Chainlink Staking".

Chainlink co-founder Sergey Nazarov announced at SmartCon 2022 that the long-awaited LINK staking reward feature will go live in December. In addition, the official website of the project