- Whales Sold 170M LINK, Breaking Two-Year Support
- Chainlink Drops 57% as Market Sentiment Weakens
- Long-Term LINK Demand Grows Despite Whale Sell-Off
Large cryptocurrency holders have sold over 170 million Chainlink (LINK) tokens in the past three weeks. The total value of these sales exceeds $2.2 billion, based on the current market price. This selling activity has coincided with a sharp price decline, raising concerns about LINK’s short-term outlook.
Chainlink Faces Selling Pressure as Whales Exit Positions
Ali Martinez notes that whales sold significant amounts of LINK resulting in a break of historical price support that endured two years. The token, which traded above $30 earlier this year, has dropped to around $13, marking a 57% decline.
Market trends show that investor enthusiasm deteriorated while the result became more sellers on the market. The decline has not been limited to Chainlink, as other cryptocurrencies like Cardano (ADA) have also seen large holders reducing their positions. In early April ADA whales conducted another 120 million token sale worth approximately $80 million which added to market depreciation.
Long-Term Outlook Remains Positive Despite Short-Term Decline
While there has been a recent market decline, analysts predict positive growth prospects for Chainlink over the long term. Michael Robinson, a crypto market expert, has pointed to Chainlink’s expanding network and adoption as key indicators of future strength. He highlighted the introduction of Smart Value Recapture (SVR) at Aave, which could improve value retention within decentralized finance (DeFi) protocols.
Additionally, the Payment Abstraction system, which converts network fees into LINK, has been introduced. This system could increase demand for the token over time. Since 2022 Chainlink has seen a steady rise in usage as demonstrated by the growth of its secured volume exceeding $20 trillion.
While short-term market sentiment remains weak, the long-term fundamentals of Chainlink continue to show resilience. The future value of the token depends on its capacity to reach support points and get investors to return to the market.
