Crypto whales are actively accumulating a popular altcoin that operates on the Ethereum network, according to a prominent on-chain analyst.

Ali Martinez, who has a large following on social media platform X, revealed that deep-pocketed investors have acquired tens of millions of dollars worth of Chainlink (LINK) in just seven days.

“Chainlink whales have purchased over 6.2 million LINK in the past week, amounting to approximately $76.88 million!”

Last week, Martinez cautioned that Chainlink seemed to have broken down from a head-and-shoulders reversal pattern after breaching the $12 support level. Traders closely monitor head-and-shoulders patterns as they suggest a potential downtrend.

With LINK currently trading slightly above $13, the analyst now warns that the altcoin may be in the process of turning a previous support level into resistance.

“Exercise caution with Chainlink! The recent rise to $13 may have been a retest of the head-and-shoulders pattern’s neckline.”

Based on the chart provided by Martinez, he predicts that LINK could plummet to as low as $6.80, representing a potential decline of nearly 50% from its current price.

At the time of writing, LINK is trading at $13.10, recording a gain of more than 6% in the past 24 hours.