Chainlink (LINK) is facing intense market pressure as it attempts to stabilize above $22 following a turbulent price decline. A recent $150 million sell-off by large holders has raised concerns among investors, but former President Donald Trump’s latest crypto initiative could provide a much-needed catalyst. With LINK hovering around $22, traders are closely watching whether it can break free from its recent downtrend or if further losses are on the horizon.
Whale Sell-Off Adds Pressure on LINK
On-chain data reveals that the top 1,000 Chainlink whale wallets have dumped 6.7 million LINK tokens (valued at approximately $150 million) since Trump’s inauguration. This significant liquidation has weighed on the token’s price, which recently peaked at $27 before tumbling nearly 12% over the past week. Large-scale selling by major holders often increases supply, making it challenging for prices to gain upward momentum.
Despite this bearish trend, LINK has shown signs of recovery, registering a modest 0.81% uptick and consolidating around $22. However, for the price to sustain a bullish reversal, it must reclaim and hold above the critical $22.50–$23.00 range.
Trump’s Truth.Fi Crypto Investment Plan: A Potential Game-Changer?
The cryptocurrency market received a surprise boost when Trump Media announced the launch of Truth.Fi, a fintech and crypto investment platform. This initiative, under the Trump Media and Technology Group (TMTG), aims to invest in digital assets, including blockchain-based financial products and ETFs.
Chainlink’s association with Trump-backed ventures was further solidified when World Liberty Financial (WLFI) was observed acquiring substantial amounts of LINK on Inauguration Day. The firm’s adoption of Chainlink’s oracle feeds suggests a growing institutional demand for LINK, which could counteract some of the bearish pressure caused by the recent whale sell-offs.
LINK’s Price Forecast: Will Bulls Regain Control?
To regain bullish momentum, LINK needs increased trading volume and fresh institutional inflows. If the token manages to break above $25, it could signal a return to bullish territory, with potential upside targets at $27.50 and even $30. A decisive breakout above this level would likely require strong buying pressure and broader market support.
On the downside, failure to hold above $22.50 could lead to another decline, with LINK potentially retesting the $19.50 support level if selling pressure persists. The ongoing $150 million whale sell-off remains a key risk factor, as large holders continue to offload their positions, contributing to market uncertainty.
Conclusion: Uncertain Path Ahead for LINK
While Trump’s Truth.Fi announcement has injected optimism into the market, the whale-driven sell-off remains a significant hurdle for Chainlink. Traders should keep an eye on the $22.50 resistance level, as a breakout above this zone could signal a renewed rally. However, if LINK fails to attract sufficient buying pressure, further downside risks could materialize. The coming days will be crucial in determining whether LINK can overcome its bearish trend and capitalize on the potential boost from Trump’s crypto investment venture.
