As Chainlink (LINK) crossed the coveted $20 threshold, a significant sell-off by whale investors has the community watching closely. Could this be the tipping point for LINK’s price trend?

Chainlink’s Price Stagnation and Whale Movements

After a bullish stride that saw Chainlink’s (LINK) price soar past $20 on February 10, the market observes a potential shift. On-chain data indicates that LINK’s whale investors have begun profit-taking, which could possibly lead to a price pullback.

The Impact of Asset Tokenization and Institutional Interest

Chainlink has been riding high on the wave of asset tokenization and Real World Assets (RWA), reinforcing its systemic relevance. This uptrend received further support following the mid-January approval of a Bitcoin spot ETF, adding a veneer of legitimacy to the broader cryptocurrency sector.

Whale Investors’ Rapid Selling Trend

The LINK ecosystem’s top 100 whale wallets have reportedly shed 6.9 million tokens within a span of 10 days. This sell-off, amounting to an estimated $130.4 million, potentially endangers the sustainability of LINK’s rally.

The Double-Edged Sword of High-Volume Sell-Offs

A sell-off of this magnitude could dilute market supply and make upward price movements more challenging. Moreover, it risks setting off a chain reaction among retail investors and trading bots, which might lead to a bearish market sentiment.

Chainlink’s Price Forecast Amidst Whale Sell-Off

Analyzing current on-chain data trends, LINK might see a downswing if whale sell-offs continue. However, the strength of the asset tokenization sector and Bitcoin’s recent surge above $50,000 could provide LINK with strong support, potentially around the $16 level.

Global In/Out of the Money and Support Levels

IntoTheBlock data suggests a significant number of addresses purchased LINK at an average of $16.30, indicating a critical support level. A breach of this level could signal a further downturn, while sustained interest from whales could propel a rebound toward $25.

The Bear and Bull Tug-of-War

Should LINK’s price attempt a recovery, initial resistance might form near $24, where many investors hold positions. Their early exits could precipitate another price pullback, leaving the market in a delicate balance between bullish hopes and bearish realities.