Chainlink (LINK) has been consolidating in recent days after posting big price increases in early February. The smart contract token has retreated below the $20 level and is currently facing a correction phase, with a drop of around 10% over the past week.
At the same time, an emerging meme currency project called galactic fox continues to gain traction as its ongoing pre-sale nears completion. Traders may want to keep an eye on GFOX as it offers blockchain gamification features through play-to-earn mechanisms.
Chain Link Price Analysis
LINK price rose to over $20 in February, but has struggled to continue that momentum in the weeks since. At the time of writing, LINK is trading around $18.4, down about 10% over the last seven days. Let's take a closer look at the Chainlink price charts:
After consolidating in a sideways channel between $13 and $17 for about 3 months, LINK broke through the key $17 level in late January to hit targets above $20. This marked a breakout of the initial channel (represented by the first set of blue lines).
LINK is now trading within another sideways channel between $18 and $20.8 formed over the past month (second set of blue lines). As long as it stays above $18, the broader trend will remain positive for LINK. However, a break above $20 is needed to signal a continuation of the uptrend with upside potential towards $23.
LINK's 200-day moving average (MA) currently stands at $11.9, an important benchmark for gauging long-term sentiment. Trading well above this level, LINK maintains a long-term bullish outlook. The 200-day MA takes into account the last 200 days of closing prices to filter out short-term noise and highlight the long-term price trend.
Adding to the bullish case, LINK's daily Relative Strength Index (RSI) sits around 23, firmly in oversold territory below the 30 level. This suggests that LINK may need a rebound after strong downward pressure during last week. The RSI compares the magnitude of recent gains to recent losses to measure buying and selling momentum. Readings below 30 imply that the asset is potentially oversold and an upward correction is more likely.
Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is pointing down on the daily chart. This indicates a weakening of momentum, with the MACD line falling below the signal line. The MACD tool measures the difference between short-term and long-term moving averages to determine the strength and direction of trends.
LINK Whale movements
According to a report published today by the leading blockchain data platform Point on the chain, the on-chain activity indicates significant movement of LINK tokens from one of the network's major merchants. The analysis reveals that a wallet address labeled “Whale 0x7d2” withdrew approximately 194,400 LINK tokens valued at around $3.67 million from the popular centralized exchange Binance on February 21.
The withdrawal occurred through two consecutive on-chain transactions at an average price of $18.87 per LINK. Since late January this year, Whale 0x7d2 has been gradually accumulating LINK tokens through a series of Binance deposits and withdrawals. The data shows that the wallet withdrew more than 928,000 LINK from the exchange between January 28 and the current date, at average prices close to $17.35.
During the LINK price rally in early and mid-February, Whale 0x7d2 partially offset these withdrawals by depositing around 533,600 LINK on Binance at an average price of $19.91. However, the latest withdrawal of 194,400 LINK indicates that the wallet may now be trying to maintain a portion of its significant LINK position in non-custodial wallets for the long term.
According to Spot On Chain analysis, Whale 0x7d2 has accumulated an estimated total profit of around $1.94 million from its trading activity involving this round of LINK accumulation and distribution since late January. The consistency of large withdrawals from centralized venues by this prominent market participant could signal growing optimism and help fuel LINK's positive momentum in the coming weeks and months.
Galaxy Fox Meme Coin Gains Ground in Pre-Sale
One project that is generating quite a bit of buzz in the current cryptocurrency bull market is Galaxy Fox (GFOX), a meme-inspired coin that integrates play-to-earn and NFT features. GFOX has reached stage 8 of its initial coin offering with over $3.5 million in token sales so far at prices between $0.002178-0.002376. Over 92% of the total token supply has been distributed at the time of writing, as the pre-sale nears completion.
Although still in its infancy, Galaxy Fox aims to captivate users through a robust virtual world with P2E gameplay and accompanying NFT marketplace. Token holders can stake GFOX to earn passive income from transaction fees as well as through in-game achievements and competitions. The project has also created a limited collection of 3,000-character NFTs for early supporters. Additionally, 2% of all trades are allocated to a liquidity pool to provide ongoing price support.
While the long-term sustainability of meme coins remains uncertain given their riskier profile, Galaxy Fox has focused on creating real utility around gamification and community engagement. With a significant portion of funds committed to ecosystem development, the project could be determined to go beyond the short-term hype. For those intrigued by the burgeoning play-to-earn niche and the potential of NFT gaming, GFOX is the coin that could potentially be added to respective watch lists.
Final thoughts
All in all, LINK manages a sideways move in the short term following gains earlier this year, its long-term outlook remains bullish supported by indicators such as the 200-day MA. A possible rebound also appears to be on the horizon after the recent oversold readings.
On the other hand, Galaxy Fox is one of the most ambitious meme coin projects that is currently in its early stages and aims to offer real utility through blockchain gaming. Its successful pre-sale indicates strong initial interest, although sustainability depends on consistent execution of the outlined roadmap. Overall, both projects could be on traders' radar in the coming weeks.
Learn more about Galaxy Fox ($GFOX) here:
Visit the Galaxy Fox pre-sale | Join the Telegram group | Follow Galaxy Fox on Twitter
This post was written by an outside contributor and does not represent the views of Benzinga and has not been edited for content. Contains sponsored content and is for informational purposes only and is not intended to be investment advice. Cryptocurrency is a volatile market; Do your independent research and invest only what you can afford to lose. New token launches and small market cap coins are inherently riskier than large cap cryptocurrencies. These tokens are subject to increased liquidity and market risks.
