The cryptocurrency market has been facing turbulent conditions following the second inauguration of U.S. pro-crypto President Donald Trump. In recent weeks, there has been a noticeable increase in the demand for stablecoins, as short-term holders face mounting financial pressures. The broader altcoin market has been following Bitcoin’s (BTC) price correction after the flagship coin failed to break through the $88k mark. Chainlink (LINK), a major player in the altcoin space, has not been spared from the market downturn.

Chainlink Price Takes a Hit

Chainlink, with a fully diluted valuation of around $14.7 billion and a 24-hour average trading volume of approximately $451 million, saw a 6% decline in the last 24 hours, trading around $14.75 on March 28 during the early trading hours of the Western financial markets.

This price drop is part of a larger trend since the start of 2025, with Chainlink stuck in a falling logarithmic trend, marked by lower highs and lower lows on the daily chart. As the market adjusts to these conditions, LINK is expected to test the lower boundary of its rising channel, potentially dipping as low as $13 in the coming weeks.

What’s Next for Chainlink?

Despite the bearish price action, there is a glimmer of hope for Chainlink. If the price manages to close above the resistance level of $16, the bearish sentiment may be invalidated. Chainlink buyers will need to flip key resistance levels, particularly the 100 and 200 Simple Moving Averages (SMA), to signal a shift towards bullish momentum.

However, without a clear break above these levels, the downside risks could remain in play, and the price may continue to struggle within the current range.

Chainlink Fundamentals: Long-Term Holders and Increased Whale Activity

One of the bright spots for Chainlink amidst the recent price fluctuations is the strength of its long-term holders. According to on-chain data from Santiment, long-term Chainlink holders—those with balances between 10k and 10 million LINK—have reached an all-time high of approximately 438.33 million coins. This suggests a significant portion of the supply is being held by investors with a long-term view, which could help stabilize the price over time.

Additionally, the Chainlink network has seen a rise in social dominance, partly due to increased involvement from its leadership with U.S. regulators. As the digital asset space continues to gain mainstream adoption, especially among institutional investors, Chainlink’s role as a vital tokenization chain may further solidify its position in the market.

Whale Activity and Market Sentiment

Whale activity has spiked as the market undergoes a wave of liquidations. This large-scale buying and selling by institutional players and whales could contribute to significant price swings in the short term. Despite the current market challenges, the increased activity from whales suggests a certain level of confidence in Chainlink’s long-term prospects.

As large investors adjust their positions and react to market conditions, it will be important to keep an eye on key support and resistance levels for LINK. The next few weeks could be crucial for determining whether Chainlink can reverse its bearish trend or if further downside risks will play out.

Conclusion: A Critical Time for Chainlink

The recent price crash has raised concerns for Chainlink, but the underlying fundamentals and increased whale activity indicate that the altcoin still holds potential for recovery. Investors will need to watch for key price levels, particularly $16, as the market determines whether Chainlink can break free from its current downtrend and head towards a more bullish outlook. With strong support from long-term holders and institutional interest in the broader digital asset space, Chainlink’s future could still be promising, provided it can navigate the current market turbulence.