Chainlink Price Analysis: LINK Nears a Major Support Test at $16 Amid Whale Selling Pressure

During Wednesday's U.S. trading hours, the Chainlink price witnessed a 4.4% drop to reach the trading value of $19. This selling pressure corresponds

Amidst the broader market correction, Chainlink (LINK) price encountered a 4.13 million token sell-off by crypto whales over the past 48 hours, impacting the token's price negatively.

This selling pressure comes as a result of Donald Trump's new tariff policy, which has been driving up selling pressure in the crypto market this week.

While Bitcoin and Ethereum saw a flash crash to key support at $91k and $2.1k, respectively, LINK's price dropped to as low as $18.13 on Monday before recovering to the $20 floor.

According to Coingecko, LINK's market cap stands at $12.15 Billion, with 24-hour trading volume fluctuating at $1.08 Billion.

Chainlink Whales Offload 4.13 Million LINK Tokens

Notably, crypto whales have offloaded 4.13 million LINK tokens over the past 48 hours, according to a tweet by market analyst Ali Martinez.

This massive volume of selling could put downward pressure on Chainlink price.

Furthermore, LINK futures open interest also saw a sharp drop from $1.04 Billion to $586 Million this week, indicating a 43% decrease.

When open interest drops sharply, it usually means that many traders are closing their futures positions, either due to profit-taking, stop-loss triggers, or reduced interest in the market.

Chainlink Price Nearing a Major Support Test at $16

Over the past two months, Chainlink price has been in a sideways action, struggling to move past the $30 psychological level.

This consolidation, when observed in the daily chart, showcases the formation of a bull flag, a continuation pattern that is commonly spotted in technical analysis.

Under the bull flag's influence, LINK price has been resonating within two downsloping trendlines, slowly converging to revive the exhausted bullish momentum for the next leg up.

If the market selling persists, the altcoin is 13% down to retest the key support trendline at $16.

However, for buyers to regain control over this asset, they need a breakout from the overhead trendline around $20.

This potential breakout will signal the end of correction and bolster buyers to chase $30, followed by $40.