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Chainlink (LINK) experienced a 3% price decline on Saturday, January 4, falling to $23 after a failed attempt to breach the $25 resistance level. Despite a strong start to 2025 for the broader crypto market, which saw top coins like Bitcoin, Ethereum, and Solana surpass key resistance levels, Chainlink’s rally has faltered, signaling potential challenges ahead for the asset.
In the first three days of January, Chainlink managed to rally 21%, but that momentum hit a snag as it retraced to $22 on January 4. A failure to break the $25 resistance raises concerns about the future direction of LINK’s price. When an established asset like Chainlink decouples from the broader market uptrend, it often signals an underlying bearish catalyst at play.
On-chain data supports this narrative, showing active selling by institutional holders. Whale investors, particularly those in the top 1,000 Chainlink holders, have begun offloading substantial amounts of LINK tokens. As of January 1, these whales held 680.3 million LINK, but by January 4, their holdings had dropped by 770,000 tokens. This sell-off, valued at around $18.4 million, has exerted downward pressure on the price, contributing to the recent price retracement.
The active selling from whales not only dilutes the market but may also deter new buyers from entering. With LINK now trading below its VWAP ($23.15) and the midline of the Bollinger Bands, short-term bearish momentum appears likely. The $23 level, which once acted as support, is now under threat as selling pressure intensifies.
Looking ahead, Chainlink’s price could face further downside if whale selling continues. If the $20 support level is tested, it may align with historical price action and the lower Bollinger Band at $18.84. However, a sustained rally above the $23.50 resistance could negate the bearish outlook, with $25 and $27.60 emerging as key upside targets.
Also Read: Chainlink Price Eyes All-Time High: Can LINK Surge Past $52 in Early 2025?
For now, LINK investors should brace for potential volatility as Chainlink navigates these critical price levels.
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.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
