The cryptocurrency market has faced increased volatility since the second inauguration of pro-crypto U.S. President Donald Trump. In the past few weeks, stablecoin demand has surged as short-term holders encounter financial strain. Meanwhile, the broader altcoin market has mirrored Bitcoin’s (BTC) price action, correcting after BTC faced rejection above $88,000.
Among major altcoins, Chainlink (LINK) has seen a sharp decline, dropping nearly 6% in the past 24 hours to trade around $14.75 on Friday, March 28. The token, which boasts a fully diluted valuation of approximately $14.7 billion and a 24-hour trading volume of about $451 million, remains under bearish pressure as the market struggles for stability.
Chainlink Price Outlook: Bearish or Bullish?
Since the start of 2025, Chainlink has been trapped in a falling logarithmic trend, marked by lower highs and lower lows on the daily timeframe. Analysts predict that if LINK continues this trajectory, it may retest the lower boundary of a rising channel around $13 in the coming weeks. However, a sustained close above the $16 resistance level could invalidate the bearish sentiment and signal potential recovery.
To confirm a bullish breakout, Chainlink’s price must surpass both the 100 and 200 Simple Moving Averages (SMA), signaling renewed market confidence. If bulls reclaim these key levels, LINK could gain momentum for a sustained rally.
🔗 Chainlink has seen a jump in social dominance across crypto social media following its hosting of a private meetup with key US government leaders. The #11 market cap has jumped +25% in value since March 10th.
— Santiment (@santimentfeed) March 28, 2025
🐳 Additionally, we are seeing growth from key stakeholder wallets… https://t.co/DmDUemu5dm pic.twitter.com/YdoxjFFxin
Institutional Accumulation and Growing Network Influence
Despite short-term price struggles, Chainlink’s long-term holders have been steadily accumulating. On-chain data from Santiment reveals that wallets holding between 10,000 and 10 million LINK now control a record 438.33 million tokens, signaling strong confidence among institutional investors.
Additionally, Chainlink has seen a rise in social dominance, fueled by increased engagement from its leadership with U.S. regulators. As tokenization and decentralized finance (DeFi) adoption grow, Chainlink remains a critical infrastructure player in the crypto space.
Also Read: Chainlink (LINK) Poised for Breakout as Demand and Trader Activity Surge
With technical and on-chain metrics painting a mixed picture, traders will closely watch LINK’s price action in the coming weeks to determine whether it can reclaim its bullish momentum or continue its downward correction.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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