February 22, 2024

chain link it is considered one of the safest assets when it comes to investments. This is due to its use cases. But with the price dropping, these use cases aren’t enough to keep the boat afloat. And investors are realizing it now.

Chainlink needs a hand

Down 10.45% in the past four days, LINK missed its second chance in three months to bounce back from current lows. Trading at $7.09, LINK fell after approaching the 23.6% Fibonacci level that stayed at the $8.35 level.

Chain price action | Source: TradingView – AMBCrypto

This recovery is crucial for many investors who were expecting gains, starting with 15.45k addresses, which have been holding back their supply since the coin hit an all-time high in May 2021.

As these holders bought their LINK at and around 20% of the all-time high (ATH), their investment will only turn into a profit when LINK returns anywhere near $52.

Chainlink all time high | Source: Intotheblock – AMBCrypto

If that doesn’t happen, investors may not have much conviction left. And, they may resort to other options, including liquidating their holdings. Some hints of the same have been visible for some time now.

Although sales have been steady for over 14 months now, they have never been overwhelming. However, towards the end of June, investor sentiment towards LINK changed from accumulation to possible liquidation.

The sudden movement of tokens between the addresses highlighted the growing impatience of investors.

Chainlink means coin age | Source: Santiment – ​​AMBCrypto

This may lead to a slower recovery since external developments are not doing much for the token at the moment. For example, the 10.45% withdrawal mentioned above came at the same time as Chainlink’s most recent milestone, where the network managed to integrate over 100 projects into the Chainlink Keepers ecosystem.

So, looking at the current state of the altcoin, it seems that regardless of the impending recovery, token holders will face a tough time recovering their losses. And, until then, they’re probably destined for impoverishment.

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