Chainlink (LINK) Tests Long-Standing Support as a Whale Dumps 356,665 Tokens

Chainlink's price tests a long-standing support level. The digital asset has been on a downward path

Chainlink’s price is testing a long-standing support level as the digital asset continues to navigate a bearish market.

The Chainlink (LINK) token has been decreasing in value since reaching $30.95 in December 2024. It hit a yearly low of $11.87 on March 11, 2025.

This decline has brought LINK to a crucial support trend line, which has held for 644 days, dating back to June 2023. Many market watchers view this as a make-or-break moment for the token.

Onchain Lens, a crypto analytics firm, has highlighted a large holder's recent move. A wallet address identified as ‘0xc6f7f’ sold 356,665 LINK tokens on March 13. The sale converted the tokens to $4.59 million USDC at an average price of $12.88.

In the past 48 hours, a whale has sold 356,665 $LINK for $4.59M $USDC at an average price of $12.88.

Currently, the wallet holds 7,693 $LINK worth $101,533.

Address: 0xc6f7fc2735ef7eb0db201dd103f2f2e6cbcfe187https://t.co/gR8wV2q06Cpic.twitter.com exemplaires 3밝히다 March 13, 2025

Despite this large sell order, Chainlink displayed unexpected strength. The token rose by 2% in the 24 hours following the whale’s exit. It closed at $13.15 and traded between $12.82 and $13.77 during this period.

The broader crypto market showed signs of relief after the latest U.S. inflation data pointed to cooling price pressures. This may have helped LINK maintain its footing even in the face of the whale’s exit.

Chainlink price analysis: weekly chart

The weekly time frame presents causes for concern. Chainlink failed to hold above the key $22.50 resistance area after briefly breaking out in late 2024. This failed breakout often signals further weakness ahead.

Technical indicators on the weekly timeframe also back this bearish view. The Relative Strength Index has dropped below 50. The Moving Average Convergence Divergence shows a bearish cross. Both suggest downward momentum remains in control.

Furthermore, wave analysis adds to the bearish case. The recent price structure forms what appears to be an A-B-C pattern. This typically means the rise was merely a correction within a larger downtrend rather than the start of a new uptrend.

Chainlink price analysis: daily chart

In contrast, the daily time frame offers a more hopeful outlook. Chainlink’s decline has formed a descending parallel channel. Such patterns frequently end with upward breakouts. The token now sits at the lower boundary of this channel.

Chainlink price chart by TradingView

Moreover, both the daily RSI and MACD display bullish divergences. These occur when price makes lower lows while indicators form higher lows. Such divergences often precede price reversals.

If a bounce does materialize, traders will watch the $16.30 level first. This marks the midline of the current channel. Beyond that, the channel’s upper boundary near $20.50 would become the next target.

Not all analysts view the recent whale activity negatively. Some point out that the seller still holds 7,693 LINK tokens. This suggests they haven't completely lost faith in the project despite taking profits.

Market analyst "Bitcoin Buddha" expressed optimism about Chainlink's future. In a recent social media post, they noted that LINK "seems to be recovering after testing support near $12." According to the analyst, this recovery could lead to new all-time highs if sustained.

$LINK seems to be recovering after testing support.

I'm optimistic about the possibility of a new all-time high in this cycle.

LFG @chainlink

DYOR – NAFApic.twitter.com/xiB9V70LVj

— Bitcoin Buddha (@Bitcoin_Buddah) March 12, 2025

Another bullish case comes from technical analysts who identified a bullish engulfing pattern on weekly charts. This candlestick formation often indicates that strong buying pressure has entered the market.

Some forecasts remain highly optimistic. One report suggested a price target of $45 remains possible as long as Chainlink holds support between $6 and $9. This would represent a new record high for the token.

On the fundamental side, Chainlink received a boost from CEO