Chainlink Whale Moves Tokens Off Exchange As LINK Price Pulls Back; Meme Coin GFOX Nears Presale Completion

Chainlink (LINK) has consolidated over the past few days after registering big price gains earlier in February. The smart contract token has pulled back below the $20 level and is currently facing a correction phase, down around almost 10% over the past week. 

At the same time, an emerging meme coin project called Galaxy Fox continues to gain traction as it nears completion of its ongoing presale. Traders may want to keep an eye on GFOX as it offers blockchain gamification features through play-to-earn mechanisms.

Chainlink Price Analysis

LINK price pumped 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 roughly 10% over the past seven days alone. Let’s take a closer look at the Chainlink price charts:

After consolidating in a sideways channel between $13-17 for around 3 months, LINK broke above the key $17 level in late January to reach targets above $20. This marked a breakout from the initial channel (depicted by the first set of blue lines). 

Now, LINK trades within another sideways channel between $18-20.8 formed over the past month (second set of blue lines). As long as it holds above $18, the broader trend remains positive for LINK. However, a break above $20 is needed to signal a continuation of the uptrend with upside potential towards $23.

The 200-day moving average (MA) for LINK currently sits at $11.9, an important benchmark for gauging long-term sentiment. By trading well above this level, LINK maintains a bullish longer-term outlook. The 200-day MA takes into account the past 200 days of closing prices to filter out short-term noise and highlight the prolonged price trend.

Adding to the bullish case, the daily Relative Strength Index (RSI) for LINK reads around 23 – firmly in oversold territory below the 30 level. This suggests LINK may be due for a bounce after heavy downside pressure over the past week. The RSI compares the magnitude of recent gains to recent losses to measure buying and selling momentum. Readings under 30 imply the asset is potentially oversold and a correction higher is more likely.

Meanwhile, the Moving Average Convergence Divergence (MACD) histogram is pointing lower on the daily chart. This indicates weakening momentum, with the MACD line declining below the signal line. The MACD tool measures the difference between short and long-term moving averages to determine the strength and direction of trends.

LINK Whale Movements

According to a report published today by leading blockchain data platform Spot On Chain, on-chain activity signals a significant movement of LINK tokens from one of the network’s major traders. The analysis reveals that a wallet address labeled as “Whale 0x7d2” withdrew approximately 194,400 LINK tokens valued around $3.67 million from popular centralized exchange Binance on February 21st.

The withdrawal occurred via 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 deposits and withdrawals from Binance. Data shows the wallet withdrew over 928,000 LINK from the exchange between January 28th to the present date, at prices averaging near $17.35.

During LINK’s price rally in early and mid-February, Whale 0x7d2 had partially offset these withdrawals by depositing around 533,600 LINK back to Binance at an average price of $19.91. However, the latest withdrawal of 194,400 LINK signals the wallet may now be seeking to hold a portion of its sizable LINK position in non-custodial wallets long-term.

According to Spot On Chain’s analysis, Whale 0x7d2 has amassed 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 indicate growing optimism and help boost LINK’s positive momentum in the weeks and months ahead.

Galaxy Fox Meme Coin Gains Traction in Presale

One project attracting decent buzz in the ongoing crypto bull run is Galaxy Fox (GFOX), a meme-inspired coin integrating 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 presale nears completion.

While still in its infancy, Galaxy Fox aims to captivate users through a robust virtual world with a P2E game 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 minted a limited collection of 3000 character NFTs for early supporters. Additionally, 2% of all trades are allocated to a liquidity pool to provide ongoing price support.

While the sustainability of meme coins in the long run remains uncertain given their riskier profile, Galaxy Fox has dedicated focus on building real utility around gamification and community engagement. With a significant portion of funds committed to ecosystem development, the project might be determined to move beyond short-term hype. For those intrigued by the burgeoning play-to-earn niche and NFT gaming potential, GFOX is the coin that potentially could be added to respective watchlists.

Final thoughts

All in all, LINK carves out sideways movement in the near term following gains earlier this year, its long-term picture remains bullish supported by indicators like the 200-day MA. A potential bounce looks incoming after the recent oversold readings too. 

On the other hand, Galaxy Fox is one of the more ambitious meme coin projects currently in its earliest stages, aiming to offer real utility through blockchain gaming. Its successful presale signals strong initial interest, though sustainability depends on consistent execution of the outlined roadmap. Overall, both projects could potentially be on traders' radars in the weeks in front of us.

Learn more about Galaxy Fox ($GFOX) here:

Visit Galaxy Fox Presale | Join The Telegram Group | Follow Galaxy Fox on Twitter

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.