TLDR
- Chainlink (LINK) has fallen significantly from its December 2024 high of $30.95 to a 2025 low of $11.87
- The price reached a critical 644-day support trend line that has existed throughout the bull run
- A major whale recently sold 356,665 LINK coins worth $4.59 million
- Short-term technical indicators show potential for a bounce despite long-term bearish signals
- Some analysts remain optimistic about LINK’s future, with one suggesting a potential $45 target if key support holds
Chainlink, one of the leading oracle networks in the cryptocurrency space, has experienced a major price correction in early 2025. After reaching heights of nearly $31 in December 2024, LINK has faced significant downward pressure, testing critical support levels that may determine its future trajectory.
The decline has been steep and concerning for investors. LINK reached a 2025 low of $11.87 on March 11, representing a drop of over 60% from its cycle high.
This drop brought LINK back to a long-term diagonal support trend line. This trend line has been in place for the entirety of the bull run, going back to June 2023.
The price action in late 2024 showed initial promise. In November, LINK appeared to break out from the long-term $22.50 horizontal resistance area after bouncing off the support trend line.
However, this breakout proved unsustainable. The price briefly moved above resistance before falling back below it, creating what traders call a “deviation” above resistance before declining again.
Technical indicators on weekly charts paint a bearish picture. Both the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) show negative momentum.
The RSI has fallen below the midpoint of 50. Meanwhile, the MACD has made a bearish cross, signaling potential further downside.
Wave analysis also suggests bearishness. The recent price action resembles an A-B-C structure, indicating the rise may have been just a relief rally following the previous downward movement after the all-time high.
A major whale sells
Adding to market concerns, data from March 13 revealed a major whale selloff. An address identified as ‘0xc6f7f’ sold 356,665 LINK tokens at an average price of $12.88, netting approximately $4.59 million USDC.
Such large sales by major holders often signal a lack of confidence. This particular whale still holds 7,693 LINK tokens worth over $100,000, suggesting they haven’t completely abandoned their position.
Despite these bearish signals, some short-term indicators offer hope. On daily charts, LINK’s decline has formed a descending parallel channel, a pattern that often leads to breakouts.
The price currently sits at the channel’s support trend line. The daily RSI and MACD have also generated bullish divergences, which frequently precede upward price movements.
If LINK does bounce, the first resistance level sits at the channel’s midline around $16.30. The second resistance would be at the channel’s upper boundary near $20.50.
Recent developments outside price action may provide some support. Chainlink CEO Sergey Nazarov was a featured speaker at the first-ever White House crypto summit, highlighting the project’s legitimacy.
The broader crypto market has shown signs of relief following the latest U.S. CPI data indicating cooling inflation. This macro backdrop could help LINK stabilize in the near term.
Strong demand
Despite the whale selloff, LINK has shown resilience, gaining about 2% in the 24 hours after the sale. This suggests strong underlying demand that may counterbalance selling pressure.
Some analysts remain optimistic about LINK’s long-term prospects. One market expert known as ‘Bitcoin Buddha’ noted that Chainlink “seems to be recovering after testing support near $12,” potentially paving the way for new all-time highs if the recovery continues.
Another analysis suggests that LINK could reach $45 if it maintains key support between $6 and $9. The weekly chart shows a bullish engulfing pattern, indicating momentum may favor buyers.
For now, LINK’s price sits at a critical juncture. The 644-day support trend line represents a major inflection point that could determine whether LINK resumes its upward trajectory or confirms a new bearish trend.
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