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 to the broader market correction recently accelerated amid Donald Trump’s new tariff policy. However, the LINK price shows potential for a bullish reversal with a flag pattern formation.
According to Coingecko, the LINK’s market cap of $12.15 Billion, and the 24-hour trading volume wavers at $1.08 Billion.
Key Highlights:
- The Chainlink price correction is poised for a 15% drop before testing the key support level of the flag pattern.
- 4.13 million LINK tokens offloaded within 48 hours indicate significant movement by large holders.
- The altcoin still holding its ground above the 200-day exponential moving average indicates the broader trend is bullish
Chainlink Whales Offload 4.13 Million LINK Tokens
This week, the crypto market witnessed a notable surge in selling pressure triggered by Donald Trump’s new tariff policy. The leading digital assets like Bitcoin and Ethereum witnessed a flash crash to key support regions such as $91k and $2.1k, respectively.
LINK, the native cryptocurrency of the decentralized oracle network, Chainlink, recorded a similar drop to $18.13 on Monday before reclaiming the $20 floor. However, the Chainlink price faces a risk of prolonged correction amid substantial whale selling.
In a recent tweet, renowned market analyst Ali Martinez highlighted that crypto whales have reportedly offloaded 4.13 million LINK tokens within the past 48 hours. Such a large volume being sold could put downward pressure on Chainlink price.
In addition, the LINK futures open interest projected a significant drop from $1.04 Billion to $586 Million this week, registering a 43% decrease. A sharp drop in open interest indicates 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, the Chainlink price has projected a sideways action, struggling to surpass the $30 psychological level. The consolidation, when observed in the daily chart, shows the formation of a commonly spotted continuation pattern called the bull flag.
Under the pattern’s influence, the LINK price has been resonating within two downsloping trendlines, potentially reviving the exhausted bullish momentum for the next leap.
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.
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