Market uncertainty and general crypto volatility have forced some Chainlink whales to offload the coin, further contributing to the LINK price instability over the past week
Chainlink’s large investors triggered a market disturbance on Wednesday by offloading millions of LINK tokens, raising concerns about the coin’s price stability.Â
According to on-chain data, approximately 4 million tokens were dumped over the past 48 hours. Unfortunately, this sell-off has fueled bearish sentiment, with LINK’s price now down 18% for the week.
Major Sell-Off Raises Red Flags
In light of recent events, crypto market analyst Ali Martinez pointed out in an X post on February 5 that Chainlink whales had offloaded 4.13 million tokens to exchanges over the past 48 hours. This substantial sell-off and the broader crypto market’s recent slowdown have triggered significant concerns among investors about LINK’s future performance.
When large investors offload significant amounts of tokens, it often signals a lack of confidence in the asset’s potential. This and the ongoing struggles in the broader crypto market have intensified bearish sentiment around LINK, leaving its future performance uncertain.
Additionally, Spotonchain’s data on X revealed that a whale recently sold 161,463 LINK tokens, securing a profit of about 200%. This move has increased bearish speculation about LINK’s future price direction.
Beyond the whale sell-offs, other factors add to LINK’s price volatility. The crypto market faces a downturn driven by economic uncertainty and shifting global trade dynamics.Â
For example, speculation about new tariffs under the Donald Trump-led government has affected financial markets, including cryptocurrencies. While the tariffs on Mexico and Canada have been delayed for 30 days, they still threaten global markets.
Similarly, Bitcoin and other altcoins have significantly declined over the past 24 hours, and LINK is no exception. LINK has dropped about 0.14%, now trading at $19.58.
Is Chainlink (LINK) Still Worth Watching?
Despite the recent dip, some analysts remain optimistic. Data from Santiment suggests that key investors are buying LINK at lower prices, viewing the downturn as an opportunity rather than a red flag.Â
Heavy trading below the $20 mark indicates that some stakeholders are betting on the token’s long-term potential.
Although Chainlink faced market uncertainty in the past 24 hours, it ended positively in January. Expert analysis suggests that the recent dip could be a buy-the-dip opportunity for investors.
In December, WLFI, a rising player in the DeFi space, spent $1 million in Circle’s USDC to acquire 37,052 LINK tokens. This purchase brought its total LINK holdings to 78,387 tokens, with an average price of $25.5 per token.
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