Chainlink [LINK] whale sells after $30 rejection – What’s next?

Earlier in the month, Chainlink [LINK] witnessed a significant surge, dubbed the “Trump Pump,” as World Liberty Financial (WLF) associated with former President Trump, invested $1 million in LINK tokens, leading to a 21% spike in a single day.

Recent on-chain indicators have hinted at a rise in selling pressure from major holders over the past fortnight, with the rally to $30 prompting profit-taking actions.

Could Chainlink now consolidate above the $20 mark and regain its bullish momentum once again?

Rise in Large Token Transactions Triggers Concerns

Towards the end of November, as LINK prices surpassed $20, there was a noticeable uptick in whale transactions over $1 million.

This heightened whale transaction activity continued during Chainlink’s trading above $22, persisting until recent days when a decline began, although two specific days – the 20th and 26th of December – saw the second and third highest transaction volume in the last quarter.

The rejection at the $25 level on the latter date signified growing unease among major holders and a surge in selling pressure over the previous ten days.

The escalated daily transaction levels mirrored those in the latter half of 2021, suggesting that whales engaged in profit-taking when the upward momentum failed to sustain.

Chainlink Treads Southward to Seek Liquidity Pockets

Analysis of the liquidation heatmap from the past couple of weeks has revealed a consistent decline in LINK prices, with a notably bearish trend in the recent week.

Although liquidity zones emerged beneath short-term support levels, they proved transient in deterring bearish sentiment.

If this downward trajectory persists, the $20 mark, which witnessed a bounce on December 30, may serve as a magnet pulling prices down in pursuit of liquidity, potentially triggering a further downturn.