Chainlink price at risk as whale dumping accelerates

Chainlink price has crashed below the 200-day moving average and is at risk of further downside as whale capitulation accelerates.

Chainlink (LINK) was trading lower on Monday, down more than 22% from its May high.

On-chain data shows that whale holdings of the LINK token have been in a sharp downtrend despite the project’s strong fundamentals.

According to Santiment, whale holdings of LINK have been in freefall this year and now stand at 565.7 million, the lowest level in over a year. In February, these large holders controlled over 611 million tokens, meaning they have offloaded 46 million coins since then.

One of these whales sold a significant amount of LINK over the weekend, moving 356,000 tokens, currently valued at $4.6 million, to Binance. The wallet owner reportedly made a profit of about $2.46 million from the transaction. 

The ongoing whale selloff has led to a modest increase in LINK supply on exchanges. Exchange balances now stand at 193.4 million tokens, up from 192 million last week. Rising exchange balances often signal that investors are preparing to sell.

Whales are offloading LINK despite its strong fundamentals. Chainlink remains the leading oracle network in crypto, with a total value secured (TVS) of $43 billion, well ahead of Chronicle’s $7 billion. It commands a market dominance of 62%.

The Chainlink network is also seeing meaningful growth. Last week, it enabled Maple Finance (SYRUP) to expand to Solana (SOL). Other protocols, including BOB, Mind Network, and Nura Labs, also integrated with the platform.

Chainlink’s technology continues to play a critical role in the fast-growing real-world asset tokenization sector. Its Cross-Chain Interoperability Protocol (CCIP) facilitates token and message transfers across multiple blockchains.

Chainlink price technical analysis

The daily chart shows that LINK has been in a downtrend over the past few weeks. The token has dropped from a May high of $17.93 to $13.90 and is now trading at its lowest level since May 8.

LINK has broken below both the 50-day and 200-day Exponential Moving Averages. The price is moving within a descending channel, and the MACD has crossed below the neutral line, indicating growing bearish momentum.

Given these signals, LINK is likely to continue falling, with sellers targeting the key support level at $10.16, its low from April 7. A move back above the 200-day EMA at $15.75 would invalidate the bearish outlook.