Chainlink Price Forecast: LINK Whales Book $20M Profits Amid 21% Rally

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As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen my fair share of market fluctuations and whale activity. The recent performance of Chainlink has piqued my interest, particularly given its decoupling from the broader market rally.

The selling pressure from institutional holders, as evidenced by the drop in their balances, is a clear sign of an internal bearish catalyst at play. This trend, if persistent, could potentially push Chainlink’s price below the crucial $20 support level.

However, it’s important to remember that the crypto market can be quite unpredictable, much like a game of three-card monte played on the streets of New York City back in the day. Just when you think you’ve got the hang of it, it throws you a curveball. So, while the current trend suggests potential downside, I always advise my readers to keep an open mind and be prepared for unexpected twists and turns.

In this case, a multi-day close above the $23.50 resistance level would indeed be a welcome surprise, signaling renewed bullish momentum. But until then, I’d suggest keeping a close eye on the whale activity and the broader market conditions. After all, even the wisest of old sailors can get caught in a storm if they don’t keep a weather eye open!

The value of Chainlink dropped by 3% and reached $23 on Saturday, as it couldn’t break through the $25 barrier. Institutional holders seem to be actively selling off their LINK, which raises questions about whether the price can prevent a fall below the $20 support level.

Chainlink fails $25 breakout test as Crypto market rally advances

In the past five days, the global crypto market has experienced significant growth, with a boost of over $280 billion to its capitalization at the beginning of 2025. While Bitcoin, Ethereum, and Solana have all surpassed key resistance levels – reaching prices of approximately $98,000, $3,600, and $220 respectively as of Saturday – Chainlink’s price surge has encountered a roadblock.

On Saturday, January 4, 2025, the Chainlink price experienced a dip of approximately 3%, dropping down to $22, marking a pause in its 21% surge that had been ongoing for the initial three days of the year.

When a highly valued cryptocurrency such as Chainlink separates from a wider market rise, as seen over the past day, this often indicates that there is a strong, negative factor at work within the asset itself.

Whale spotted offloading 770,000 LINK tokens amid market rebound

The current decrease in Chainlink’s price over time aligns with heavy selling by large-scale investors, suggesting a possible continuation of the decline.

To support this viewpoint, the graph below displays the day-to-day holdings of the top 1,000 biggest Chainlink investors. Essentially, it acts as a tool to monitor the buying and selling tendencies of these ‘whales’ in real time.

Approximately 680.3 million LINK tokens were held by Chainlink’s significant investors on January 1st. However, with the rise in cryptocurrency prices, these large investors (whales) sold around 770,000 LINK tokens, causing their holdings to decrease to approximately 679.5 million tokens by January 4th, when the latest press update was released.

With each token currently valued at approximately $23, these ‘whales’ amassed a profit of around $18.4 million during Chainlink’s 21% price surge between January 1 and January 4. This significant, quick sale from big-time investors has the potential to influence market trends in two key ways, as it may create bearish effects.

Initially, big sell orders decrease the availability of LINK in the spot market, which slows down the rate at which its price increases compared to other tokens. Furthermore, the frequent selling by large investors might discourage newcomers from entering the market.

Consequently, the intense selling spree by the large Chainlink investors, or “whales,” at $18.4 may account for a significant portion of the 3% drop observed in the LINK price, which previously attempted to break through the $25 resistance level.

If whales continue to sell, it’s possible that the price of Chainlink may shrink even more over the coming days.

Chainlink price forecast: $20 support at risk

As a seasoned cryptocurrency trader with over a decade of experience in this volatile market, I’ve learned to pay close attention to technical indicators when making investment decisions. Based on my analysis of Chainlink’s current trading price, below its VWAP ($23.15) and the midline of the Bollinger Bands, it seems we could be in for a bearish short-term trend.

However, it’s important to note that broader market optimism can sometimes mask underlying selling pressure, as is suggested by whale activity on the chain. As someone who has seen the crypto market swing from bullish euphoria to crushing bear markets and back again, I always remain cautious when investing in any asset, particularly during periods of widespread market enthusiasm.

In light of these factors, I believe it’s essential to exercise patience and maintain a watchful eye on Chainlink’s price action before considering making an investment move. The risks of further declines appear to be heightened at this time, but the potential for future gains in the long term remains a possibility. As always, it’s crucial to do thorough research and carefully weigh the risks before committing any funds to the market.

Previously, the $23.00 mark served as a strong psychological barrier for buyers, but now it seems to be succumbing to an increased wave of bearish pressure. Lower trading volumes suggest that Chainlink’s price might decrease, as fewer buyers are stepping in. This could potentially increase the risks on the downside.

If the downward trend persists, LINK might reach $20 as a potential psychological support level. This aligns with previous price behavior close to the lower boundary of the Bollinger Band, which is around $18.84.

Instead, if prices stay above the $23.50 barrier for multiple days, it could indicate a resurgence of bullish energy. This would contradict the bearish outlook, with $25.00 and the upper Bollinger Band around $27.60 emerging as significant upward goals.

 

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2025-01-04 15:48