A significant sell-off by a Chainlink (LINK) whale has sent shockwaves through the cryptocurrency market. A single whale dumped 1.62 million LINK, worth approximately $28.9 million, increasing selling pressure on the market. The large transaction has raised concerns about whether Chainlink’s bearish trend will continue or if a short-term recovery is possible.
Whale Dump Sends LINK to Key Support Level
The market was already struggling with a lack of momentum when the whale’s massive sell order was placed. As of October 23, 2025, Chainlink was trading at $17.40, marking a 3.35% decline in the last 24 hours, with trading volume surging by 18% to $1.23 billion. Despite the drop, the increased volume suggests a heightened level of speculative activity.
One of the most telling indicators of the market’s current sentiment is the data from CryptoQuant, which shows the Spot Taker Cumulative Volume Delta (CVD) indicating a consistent dominance of selling over the past week. Between October 15 and October 22, the chart revealed a series of red bars, signaling that selling pressure has far outweighed buying activity. This suggests that unless buying interest returns soon, the bearish trend for LINK could persist.
LINK Price Action and Key Support Levels
Chainlink’s price action has painted a bearish picture in recent days, with the token hovering near the crucial support level of $16.50. The cryptocurrency has now printed two consecutive red candles on the daily chart, indicating that the downward pressure is intensifying. The price is also trading below the 200-day Exponential Moving Average (EMA), currently positioned at $18.97, further confirming the ongoing bearish trend.
If LINK fails to maintain support at $16.50, the next major level of support could be as low as $8.70, a significant 45% decline from its current price. This would mirror previous breakdown levels during past market corrections.
Will the Bulls Defend the $16.5 Support?
While the market sentiment is currently negative, there is a chance that LINK bulls could step in to defend the $16.50 support level. If the price manages to stay above this level, it could trigger a potential 23% recovery, pushing LINK towards $21.50. However, if the support fails to hold, the market could see a sharp decline toward $8.70, reinforcing the vulnerability of Chainlink in the short term.
The LINK Exchange Liquidation Map, provided by CoinGlass, indicates that there is significant short positioning around the $18.50 mark, totaling $21.05 million. This suggests that many traders are betting on further downside, viewing any bounce as an opportunity to short rather than a sign of a bullish breakout.
Is Chainlink’s Bearish Trend Here to Stay?
The latest metrics suggest a prolonged period of bearish sentiment for Chainlink unless there is a substantial change in market dynamics. With the whale dump putting extra pressure on the market and the CVD showing a dominance of selling, it seems likely that the trend will continue unless new buyers enter the market.
Moreover, the rise in short positions indicates that many traders are preparing for further declines. Given the current market sentiment, it is essential for LINK bulls to defend the $16.50 support zone if they want to prevent a further downturn. Without this level of support, the market could see LINK testing new lows, with $8.70 as the next potential target.
Conclusion: Will LINK’s Bears Prevail?
The recent whale dump has intensified the selling pressure on Chainlink, pushing the price closer to its key support level of $16.50. If the bulls fail to defend this crucial zone, Chainlink could face a more significant decline, with a potential drop to $8.70. However, if the market sees a reversal in sentiment, LINK could recover and attempt to retest higher levels. For now, the outlook for Chainlink remains cautious as market participants weigh the strength of both the bulls and the bears.
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