Chainlink (LINK) Whales Reduce Holdings as Price Declines, But Key Stakeholders Accumulate Below $20

Chainlink (LINK) is under heavy pressure as large holders offloaded 4.13 million tokens in just 48 hours. This sudden whale exodus has rattled investors, contributing to a 15% weekly price decline and raising concerns over the token's near-term outlook.

Cryptocurrency Chainlink (LINK) has come under immense pressure recently, with large holders offloading a staggering 4.13 million tokens in just 48 hours, according to a report by crypto analyst Ali Martinez. This mass exodus of whales has spooked investors, contributing to a 15% weekly decline in LINK's price and sparking concerns over the token's near-term outlook.

As reported by Martinez, these whales shifted millions of LINK tokens to exchanges, a move that usually indicates an intent to sell their holdings. When large investors, known as whales, reduce their exposure to an asset, it can signal weaker market sentiment and increase volatility in the token's price.

This selloff also coincides with a broader market downturn, fueled by macroeconomic uncertainties, such as trade war fears and impending tariffs, which have battered Bitcoin and altcoins alike.

Adding to the uncertainty, prominent crypto trader Nebraskangooner points out that LINK is in a consolidation phase, with a break below key support sending prices plummeting to $12.00, while a strong breakout above resistance could trigger a bullish reversal.

However, not all whales are fleeing - some are using the opportunity to buy back at lower prices, which could create a potential turning point for LINK's price action.

Despite the heavy selling, data from Santiment reveals a key trend - large stakeholders are actively accumulating LINK below $20. According to the analytics firm, there were 1,659 daily transactions exceeding $100,000, the highest level since 2023.

Moreover, the number of active LINK wallets surged to 9,531, a four-week high, indicating that both retail and institutional investors are still engaging with the asset.

This mixed whale behavior suggests a battle between profit-taking sellers and long-term buyers looking for an entry point.

Furthermore, on-chain data from Token Terminal supports the bullish argument. LINK's daily active addresses nearly doubled in just three days, surging from 2,900 to 6,300, marking its highest point since December.

In addition, LINK's network revenue hit $4,500 on Monday, its strongest single-day performance in over a month.

At the time of writing, LINK is trading around $19.93, reflecting a 3.44% daily decline. The token tested support at $16.91 earlier this week, suggesting a critical price level that could dictate future movements.

If buyers step in, LINK could break above $20 and target $21.50. However, if selling pressure continues, it risks dropping back to $16.91, or even $12.00, as predicted by Nebraskangooner.