Whale Sell-Off Floods Market with Over 4 Million LINK, Price Drops to $19

A significant sell-off by crypto whales has flooded the market with over 4 million LINK tokens, driving the price of Chainlink (LINK) down to $19, marking a substantial decline from recent highs.

According to crypto analyst Ali Martinez, large holders of Chainlink — those controlling between 1 million and 10 million tokens — began reducing their positions on February 2, 2025. This mass liquidation caused a sharp drop in the token's value, from over $21 to its current level around $19.

This isn't the first time a whale sell-off has impacted LINK's price. A similar event occurred in late January, when a significant reduction in whale holdings contributed to a price drop from $26 to $22. The recent sell-off comes despite the absence of major negative news regarding Chainlink, suggesting that it was driven more by profit-taking. LINK had recently traded above $25, and the broader crypto market sentiment, influenced by new tariffs implemented by U.S. President Donald Trump on imports from Mexico, Canada, and China, has contributed to the increased volatility in the space.

Market Sentiment and Technical Outlook

The recent market volatility is likely linked to broader macroeconomic factors, including the impact of the U.S. tariff policies, which have increased uncertainty and prompted investors to liquidate positions in riskier assets like Chainlink.

On the technical side, crypto trader Nebraskangooner, with 375K followers on X, noted that LINK is currently in a consolidation phase. He cautioned that a breakdown below key support levels could send the token as low as $12.00. However, if Chainlink breaks above resistance levels, it could trigger a new uptrend and potential local highs.

“Would rather wait for a consolidation break than get lost in the chop inside,” Nebraskangooner remarked, highlighting the importance of waiting for clearer signals in this volatile market phase.

As the market continues to navigate through periods of uncertainty, investors are closely monitoring LINK's price movements and broader crypto market trends. The upcoming days could prove critical in determining whether this consolidation phase will lead to further downsides or a recovery.