Chainlink whales are in selloff mode with 4 million tokens gone.
Investor sentiment remains tempered as the Trump tariff, and its impact linger.
Analysts are still optimistic about Chainlin,k with a significant upside forecast ahead.
A massive whale sell-off has caused the price of Chainlink LINK$18.8024h volatility:0.2%Market cap:$12.00 BVol. 24h:$423.11 M
to plummet, leaving investors on edge. According to on-chain data, over 4 million LINK tokens were dumped into the market, causing the price to plunge from over $21 to $19.
This sudden drop, observed by crypto analyst Ali Martinez, aligns with a pattern in late January when a similar whale sell-off pushed LINK from $26 to $22.
The broader crypto market is already facing turbulence, fueled by economic uncertainty and new tariffs imposed by US President Donald Trump. As a result, investors are bracing for further volatility, wondering whether this dip is a warning sign or a buying opportunity.
What Triggered Large Holders to Offload Over 4 Million LINK?
According to on-chain data shared by Ali Martinez, whales holding between 1 million and 10 million LINK reduced their positions by 4.13 million tokens starting February 2, 2025.
Historically, whale movements significantly impact market sentiment, and this event was no exception. When whales offload large token amounts, it often signals a lack of confidence in its short-term potential.
The latest sell-off follows a similar pattern just weeks ago when large-scale liquidations triggered a sharp price decline. These repeated whale movements are making traders cautious, as such activity can lead to extended bearish trends if not counterbalanced by intense buying pressure.
This whale movement came after Coinspeaker reported that the analysts are optimistic that Chainlink could soar to $30 soon.
As of January 28, LINK’s price has consolidated above $24, with a strong support market trajectory and rising on-chain activity.
Meanwhile, there has not been any negative news surrounding Chainlink, a leading decentralized blockchain network. Market watchers speculated that the sell-off is a strategic profit-taking move by large holders.
Beyond the whale sell-off, external market factors have added to the uncertainty. As highlighted by Coinspeaker, the recent announcement of tariffs on imports from Mexico, Canada, and China has heightened economic tensions.
The situation has negatively impacted traditional and digital assets alike. Notably, the tariffs for Mexico and Canada have been postponed for 30 days. Nevertheless, the looming trade war fears have led many investors to de-risk their portfolios.
As seen in the past, such economic measures have pushed investors toward traditional, safer assets like gold and government bonds. While riskier assets, including cryptocurrencies, suffer from sell pressure.
Chainlink and other altcoins have been caught in this storm, experiencing a notable decline in the past 24 hours. In contrast, Bitcoin (BTC) briefly climbed to $100,000, pushed by President Trump’s sovereign wealth fund announcement. It is trading by $97,511, down by 1.30% in the past 24 hours.
Will Chainlink Hold or Break Below Key Support?
Amidst the ongoing volatility, Nebraskangooner, a prominent crypto trader, highlighted that LINK is consolidating.
He warned that if the price breaks below key support, it could drop as low as $12.00. However, a decisive breakout above resistance could ignite a bullish reversal and drive LINK toward new local highs.
His cautious stance reflects the broader uncertainty in the market as traders await a clear directional move before committing to new positions.
Despite the bearish impact of the whale sell-off, on-chain data suggests that some large investors are buying the dip. Significant on-chain activity was recorded below the $20 level, indicating that key stakeholders are accumulating LINK at lower prices.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.