A massive whale sell-off flooded the market with over 4 million LINK, driving the price down to $19.
Crypto analyst Ali Martinez shared his observation in an X post, pointing out that large holders controlling between 1 million and 10 million Chainlink (LINK) reduced their holdings by over 4 million LINK starting Feb. 2, 2025.
The decline in whale holdings appears to have put downward pressure on LINK’s price, which fell from over $21 to around $19. A similar whale sell-off occurred in late January, leading to a price drop from approximately $26 to $22.
Since no major negative news about Chainlink has surfaced, this sell-off is likely due to profit-taking, as LINK recently traded above $25, according to CoinGecko. Moreover, the broader crypto market sentiment fuelled by the recent implementation of tariffs by the U.S. President Donald Trump may have played a part. These tariffs, affecting imports from Mexico, Canada, and China, led to increased market volatility and prompted many to liquidate positions in riskier assets such as Chainlink.
On the technical front, crypto trader Nebraskangooner told his 375K followers on X that LINK is currently in a consolidation phase. He cautioned 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,” he remarked.
