Chainlink (LINK) faces mounting selling pressure as whale addresses offload a staggering 170 million tokens in just three weeks, threatening crucial support levels and raising concerns about potential further downside. The massive whale exodus comes amid broader crypto market uncertainty and technical weakness.
According to on-chain analytics platform Santiment, major LINK holders have engaged in significant distribution, with whale wallets reducing their positions substantially. This selling activity has contributed to LINK’s 17% price decline since March 26, pushing the token to test critical demand zones around $13.
The timing of this whale selling activity coincides with broader altcoin market struggles, though some analysts maintain that quality projects like Chainlink could lead the eventual recovery once market conditions improve.
Technical Analysis: Critical Support Levels Under Pressure
LINK currently trades at $13.1, having failed to reclaim the psychologically important $15 level. The rejection from this resistance zone has left bulls in a defensive position, with several technical indicators flashing warning signs:
- 200-day moving average at $17.2 remains a distant resistance
- Price action consolidating above last-ditch support at $13
- Volume profile showing decreased buying interest
- RSI indicating oversold conditions but lacking reversal signals
On-Chain Metrics Paint Bearish Picture
Beyond price action, on-chain metrics reveal concerning trends:
- Whale addresses have sold 170M LINK in three weeks
- Network activity showing decreased institutional interest
- Exchange inflows increasing, suggesting more selling pressure ahead
- Long-term holder behavior shifting towards distribution
Recovery Scenarios and Risk Factors
For LINK to stage a meaningful recovery, several key levels must be reclaimed:
- Immediate resistance: $15
- Critical breakthrough needed: $17.2 (200-day MA)
- Bull case target: $20 upon trend reversal
- Support to defend: $13, followed by $10
FAQ Section
What caused the recent LINK whale selling?
The whale selling appears connected to broader market uncertainty and potential profit-taking after LINK’s strong performance in early 2025.
Could LINK drop below $10?
While possible, $10 represents strong historical support with significant buyer interest. A break below would signal severe market deterioration.
What are the key levels to watch?
Critical support sits at $13, while $15 and $17.2 represent major resistance levels that must be reclaimed for a bullish reversal.
As market participants closely monitor these developments, the coming days will be crucial in determining whether Chainlink can maintain its critical support levels or if further downside is imminent. The project’s strong fundamentals and growing DeFi adoption could provide a foundation for recovery, but technical factors and whale behavior suggest caution in the near term.