Here’s why Chainlink price is tumbling as liquidations jump

Over the past three days, Chainlink (LINK) has seen a notable decline, dropping from a recent high of $25.65 to $23.50, reflecting broader market trends and specific pressures on the token.

Summary

• LINK price has fallen alongside a broader crypto market retreat.
• Whale sell-offs and rising liquidations are adding downward pressure.
• Despite the dip, Chainlink maintains strong fundamentals as the leading oracle provider.
• Chainlink Price Drops Amid Market Sentiment and Liquidations

Chainlink, the largest oracle network in the cryptocurrency space, experienced a price decline as market sentiment soured ahead of anticipated Federal Reserve decisions. Investors also appear to be taking profits after LINK’s recent rally. According to CoinGlass, liquidations surged to $3.3 million, the highest since September 1, 2025, intensifying selling pressure on the token.

The broader cryptocurrency market also faced declines, with Bitcoin (BTC) slipping to $115,174 (-0.33%), Ethereum (ETH) falling to $4,508.95 (-2.36%), and Solana (SOL) dropping to $233.15 (-5.95%) in the last 24 hours. Other major tokens, including BNB (-0.86%), XRP (-1.46%), and Shiba Inu (-5.11%), also recorded losses, reflecting a cautious market mood.

Whale Activity and Profit-Taking

Data from Nansen indicates that large investors, or "whales," have been reducing their LINK holdings, potentially contributing to the price drop. Whale wallets now hold 4.71 million LINK tokens, down from 5.27 million last month, suggesting profit-taking or anticipation of further declines.

Strong Fundamentals Underpin Chainlink’s Long-Term Value

Despite the short-term price correction, Chainlink remains a cornerstone of the crypto ecosystem as the leading oracle provider, enabling off-chain data to integrate seamlessly with blockchain networks. Notably, the U.S. government has begun leveraging Chainlink’s platform to bring its extensive data reserves on-chain, underscoring its real-world utility.

Chainlink is also bolstering its LINK reserves through on-chain and off-chain fees, amassing tokens valued at over $6.5 million. As network adoption grows, these reserves are expected to increase further, supporting the project’s long-term sustainability.

The platform boasts significant partnerships, including collaborations with JPMorgan, the largest U.S. banking group, UBS, a leader in wealth management, and Swift, which is exploring blockchain-based solutions for international money transfers. These partnerships highlight Chainlink’s growing influence in both traditional finance and decentralized ecosystems.

Technical Analysis: LINK Price Outlook

From a technical perspective, LINK’s 12-hour chart shows a recovery from its April low of $10.13 to the current level of $23.50. The price remains above the 50-period and 100-period Exponential Moving Averages (EMAs), signaling sustained bullish momentum. Additionally, LINK has formed a symmetrical triangle pattern, with its converging lines nearing a breakout point. A bullish pennant pattern is also visible, suggesting potential for upward movement.

Analysts anticipate that LINK could break out to the upside, potentially retesting last month’s high of $27.83, which would represent a 20% increase from current levels. However, continued market volatility and whale activity could influence short-term price action.

Conclusion

While Chainlink’s price has faced downward pressure due to market-wide declines, liquidations, and whale sell-offs, its robust fundamentals and strategic partnerships provide a strong foundation for future growth. Technical indicators suggest a potential bullish breakout, but investors should remain mindful of broader market trends and macroeconomic factors, such as Federal Reserve policy decisions, that could impact short-term performance.

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