Chainlink Price Prediction: Whales acquire $20M in LINK as XRP, DOGE lead market recovery
- Chainlink price reclaimed the $20 territory on Tuesday, rising 10% in 24 hours and halting a rut of 24% losses from last week.
- Traders are leaning towards crypto projects with close links to the incoming Trump administration, including DOGE and XRP.
- Chainlink’s top 100 holders acquired 1.3 million LINK tokens during the recent price dip
- Chainlink connects offline data to on-chain oracle feeds, positioning it to benefit from the mainstream adoption of US-based blockchain projects.
Chainlink price edged towards the $20 territory on Tuesday, racing into a 10% surge as the crypto market received a major boost ahead of Donald Trump’s inauguration. On-chain data shows whale investors have been buying the dip while the crypto price declined over the past week. Is LINK on the verge of a major price breakout?
Chainlink price retests $20 as Trump inauguration boosts crypto market sentiment
Chainlink’s price surged on Tuesday, tracking the broader rally in the cryptocurrency market as sentiment soared ahead of Donald Trump’s upcoming inauguration on January 20.
With just a week to go, the anticipation of pro-crypto policies from the incoming administration—such as the proposed zero-tax on United States (US)-based crypto projects and the expected approval of altcoin ETFs—has spurred optimism in the market following a volatile start to the week.
Crypto traders have turned their attention to assets with strong ties to the incoming administration, including Dogecoin (DOGE) and Ripple (XRP). Both saw notable gains: DOGE jumped 7% and XRP gained 6% within the 24-hour period. However, Chainlink (LINK) outperformed the pack, securing its place as one of the market’s top performers.
As shown in the chart above, Chainlink’s price spiked by 10% in the last 24 hours, climbing from $17.80 to reclaim the $20 mark as of press time.
The surge underscores the growing confidence in the project, which plays a critical role in connecting off-chain data to on-chain oracle feeds.
With Trump’s policies set to boost mainstream adoption of blockchain projects in the US, Chainlink stands to benefit significantly from the current bullish tailwinds.
If this sentiment continues to build in the days before Trump’s inauguration, LINK’s price could see additional upside.
Whales acquired 1.3 million LINK despite the recent market dip
The upturn in LINK prices on Tuesday has been primarily attributed to positive shifts in market sentiment ahead of Trump’s inauguration.
However, a closer look at the Chainlink on-chain transactions data reveals that whale investors were accumulating significant amounts of LINK tokens during the market dip last week.
Santiment’s chart, shown below, tracks the balances held by the top 1,000 largest wallets on the Chainlink blockchain network.
As illustrated in the chart, the holdings of Chainlink’s largest 1,000 wallets increased from 679 million LINK to 680.3 million LINK between January 8 and Monday.
Despite a 24% drop in LINK prices during this period, whales collectively spent approximately $26 million to acquire 1.3 million LINK tokens.
This large-scale accumulation by whales during a market dip signals that the network's largest investors view the recent crypto market downtrend as a temporary phase.
Beyond that, such large whale accumulation during a market sell-off often serves to absorb excess supply, creating conditions for a potential price breakout once market sentiment shifts.
Hence, the whales’ accumulation of $26 million worth of LINK last week partly explains why Chainlink's price outperformed assets like XRP and Dogecoin (DOGE) as the broader crypto market rebounded on Tuesday.
Chainlink Price Forecast: Close above $21.5 could spark a $25 breakout
Chainlink (LINK) currently trades at $20.28, recovering 4.86% in the last session.
The chart reveals key dynamics, including a notable 13-bar correction and probabilities for reversal versus continuation, that provide critical insight into LINK's next move.
Recent whale accumulation of $26 million further bolsters bullish sentiment.
The 13-bar correction, spanning nearly seven days, saw LINK drop 24.05%, reflecting intense selling pressure and testing investor confidence.
However, the swift rebound, marked by a bullish reversal at $20.36, signals that buyers are reclaiming control.
This level serves as a crucial pivot point, and LINK is currently attempting to consolidate above it.
The continuation probability of 81.43% indicates a strong likelihood of LINK maintaining its upward trajectory.
This figure highlights that momentum favors a breakout scenario, particularly if LINK closes above $21.50, the next significant resistance.
On the downside, the lingering effects of the correction could still pressure LINK’s price. Failure to hold above $20.36 could see LINK revisiting $20.08 or potentially falling to $19.76, reflecting residual bearish sentiment.
However, with volume climbing to 8.15 million on green candles, the recovery appears supported by growing market interest, suggesting buyers have the upper hand for now.
If LINK breaks $21.50, a rally to $25 becomes the primary target, reigniting hopes for a broader bullish breakout
Author
Ibrahim Ajibade
FXStreet
Ibrahim Ajibade is an accomplished Crypto markets Reporter who began his career in commercial banking. He holds a BSc, Economics, from University of Ibadan.
