Chainlink price declined 3% to hit $23 Saturday having failed to breach the $25 resistance. On-chain data shows active selling activity among LINK institutional holders. Can LINK price avoid a breakdown below the $20 support level?
Chainlink fails $25 breakout test as Crypto market rally advances
Amid a positive start to 2025, the global crypto market capitalization has increased by more than $280 billion in the last 5 days. However, while top-ranked coins, including Bitcoin, Ethereum and Solana, all advanced above key resistance levels at $98,000, $3,600 and $220, respectively on Saturday, Chainlink price rally has hit a snag.
The TradingView chart above shows how Chainlink price retraced 3% to hit $22 on Saturday January 4, halting a run of 21% gains in the first three days of 2025.
When a top-ranked asset like Chainlink decouples from a broader market uptrend, as observed in the past 24 hours, it signals the presence of an active internal bearish catalyst.
Whale spotted offloading 770,000 LINK tokens amid market rebound
Chainlink ongoing price retracement has coincided with intense selling activity from whale investors, signaling potential for more downside.
In affirmation of this stance, the Santiment chart below represents daily balances held by the top 1,000 largest Chainlink investors. This serves as a proxy for tracking whale accumulation and selling trends in real-time.
Chainlink’s top holders held 680.3 million LINK tokens as of January 1. But as crypto prices surged, the whales offloaded 770,000 LINK, as their balances dropped to 679.5 million at press time on January 4.
Valued at the current prices of $23 per token, the whales effectively booked profits to the tune of $18.4 million dollars amid Chainlink’s 21% price rally between January 1 and January 4. Such a large volume rapid sell-off from whale investors triggers bearish impacts for two key reasons.
First, the large sell-orders dilutes spot markets supply, slowing down LINK’s price accent relative to other tokens. More so, whale investors’ active selling activity could potentially dissuade new market entrants.
Hence, the downward pressure applied by the Chainlink whales $18.4 selling frenzy partly explains why LINK price has retraced 3% from the $25 resistance.
If the whales’ selling trend persists, Chainlink price could be at risk of further downsizing in the days ahead.
Chainlink price forecast: $20 support at risk
Chainlink price currently trades below its VWAP ($23.15) and the midline of the Bollinger Bands, signaling a bearish bias in the short term. Despite broader crypto market optimism, whale activity on-chain suggests sustained selling pressure, heightening risks of further declines.
The $23.00 level, previously acting as a psychological support zone, has given way to heightened bearish momentum. Declining trading volumes add credence to the cautious Chainlink price prediction, as a lack of buyer participation amplifies downside risks.
Should the bearish momentum continue, LINK could test $20 as a psychological support, aligning with historical price action near the lower Bollinger Band at $18.84.
Conversely, a multi-day close above the $23.50 resistance level would signal renewed bullish momentum. This would invalidate the bearish scenario, with $25.00 and the upper Bollinger Band near $27.60 acting as key upside targets.
ibrahim
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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