Chainlink whales go into buying spree while technicals suggest LINK price could drop to $12

Unlike most of the top cryptocurrencies, Chainlink established its all-time high in August 2020 at around $20. The digital asset plummeted to $7.4 before recovering and touching $16,39 on November 24. 

Chainlink price remains stable but could be on the verge of a big move

On the 4-hour chart, Chainlink has established an ascending parallel channel since September 23 and it’s trading right in the middle of it. The upper trendline is all the way at $17 and the lower boundary at $12.

LINK/USD 4-hour chart

The TD Sequential indicator has just presented a sell signal. In the past, these sell signals have been extremely accurate which indicates LINK is on the verge of a breakdown. The 100-SMA is acting as a strong support level. Breaking below this moving average can quickly push Chainlink price towards the 50-SMA at $13.3 and the lower boundary of the parallel channel at $12.

LINK/USD 4-hour chart

On the other hand, according to recent statistics provided by Santiment, it seems that the number of Chainlink whales continues to grow in the past month. This indicates that large investors are still extremely interested in the digital asset despite being having a lower value.

If the bulls can hold the 100-SMA support on the 4-hour chart, the sell signal would be invalidated and Chainlink price can quickly climb towards the upper boundary of the ascending parallel channel at $17.