Chainlink Price Drops to $19 Amid Whale Sell-Off

Over 4 million Chainlink (LINK) tokens have been offloaded by large holders, leading to a significant decline in the cryptocurrency’s price. Crypto analyst Ali Martinez recently pointed out that whales controlling between 1 million and 10 million LINK reduced their holdings by over 4 million tokens starting February 2, 2025.

According to Martinez, this sell-off has put downward pressure on LINK’s price, causing it to drop from over $21 to around $19. A similar whale sell-off occurred in late January, resulting in a price drop from approximately $26 to $22.

Profit-Taking and Market Volatility

With no major negative news surrounding Chainlink, the sell-off is likely due to profit-taking. LINK recently traded above $25, making it an attractive time for whales to cash in. Additionally, the broader crypto market sentiment, fueled by recent tariffs implemented by the U.S. President, may have contributed to the sell-off. These tariffs, affecting imports from Mexico, Canada, and China, have led to increased market volatility, prompting many to liquidate positions in riskier assets like Chainlink.

Technical Analysis

Crypto trader Nebraskangooner has stated that LINK is currently in a consolidation phase. He warns that a breakdown below key support could potentially push LINK as low as $12.00. However, a breakout above resistance could set the stage for new local highs and a potential uptrend.

Would rather wait for a consolidation break than get lost in the chop inside.

Nebraskangooner’s analysis suggests that LINK is experiencing a “pretty straight forward consolidation” when viewed from a broader perspective. A breakdown from this support level could result in a significant price drop, while a breakout above resistance could lead to new local highs and a potential uptrend.

Tips for Investors

If you’re considering investing in Chainlink, keep the following in mind:

  • Keep an eye on whale activity, as large sell-offs can impact the market.
  • Monitor market sentiment and global economic news, as they can influence crypto prices.
  • Consider technical analysis, such as consolidation phases and support levels, to inform your investment decisions.

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