The price of Chainlink (LINK) has undergone a significant 15% drop from its annual peak of $16.60, which was achieved 10 days ago. This article delves into the principal factors contributing to this correction and explores the possibility of a swift rebound. After almost a month of consistent buying, LINK bulls appear to be showing early signs of fatigue. This raises questions about whether the price of LINK will rebound towards $20 or retrace back to $10.

From October 17th to November 11th, Chainlink’s price underwent a massive 130% breakout. Data trends from the blockchain highlight that the whales, Chainlink’s top 150 holders, played a significant role in this rally. According to data from Santiment, these investors rapidly accumulated 36.07 million LINK during this period, bringing their cumulative balances to a peak of 730.37 million tokens. However, following the price reaching $16.60 on November 11, their buying pressure has significantly receded.

The latest figures show a reduction in LINK holdings by 1.56 million tokens among these top-tier investors, raising concerns about investor fatigue. Data from TheTie indicates a similar trend amongst retail investors whose buying patterns have dropped since its yearly peak. The active addresses with increased balances on-chain indicate a growing disinterest and waning buying pressure. Without a fresh influx of capital or a bullish news event, Chainlink will need substantial rallying to attempt a swing at the $20 mark.

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Will whales push Chainlink (LINK) price back to $20?