Chainlink (LINK) has been facing a tough market environment recently, with the token experiencing a significant drop in price. Despite this, investor interest, particularly from whales, continues to persist. On February 18, 2025, a noteworthy increase in whale purchases was recorded, with over 1.10 million LINK tokens being bought within a 24-hour span. This large-scale accumulation is intriguing, but the overall market conditions suggest that LINK may be on the verge of further decline.

LINK’s Current Price Struggles

Currently, LINK is trading around $17.50, a notable dip from its previous levels. Although the whale buying activity signals potential optimism, the technical indicators and recent price movements lean toward a bearish outlook. With a 20% increase in trading volume, it’s clear that there is heightened interest in LINK, yet this hasn’t been enough to maintain an upward price trend.

Technical Breakdown and Bearish Sentiment

At the beginning of February 2025, LINK broke below the critical support level of $20, which marked the start of its consolidation phase below that threshold. This breakdown has set the stage for a bearish trend, and the recent price drop has solidified this pattern. LINK has now fallen below the 200 Exponential Moving Average (EMA) on its daily chart, a significant signal of a continued downtrend.

According to market analysts, if LINK fails to hold the $17.45 level and closes below it, there’s a high likelihood of further losses. Experts suggest that LINK could see a 15% decline, bringing it to a potential low of $14.75. The persistent weakness in the market, combined with a lack of strong bullish signals, makes this price target a realistic possibility in the near term.

Shift Toward Short-Selling Dominance

The bearish outlook for LINK is also reflected in the behavior of short sellers, who have increasingly dominated the market. Data from Coinglass indicates a surge in short positions, with traders betting against the asset as it continues its downward movement. Short sellers are especially active at the $18.56 resistance level, where they hold nearly $10 million worth of positions. This suggests that many market participants do not expect LINK to recover past this key price level in the immediate future.

On the other hand, long-position holders are over-leveraged at $17.33, with approximately $1 million in long positions. This imbalance indicates that there could be significant selling pressure if LINK fails to recover and continues to decline. With the sentiment shifting toward short-selling, the market may see a continued downturn unless a major reversal occurs.

The Role of Whale Accumulation and Market Sentiment

Whale accumulation remains one of the more interesting aspects of LINK’s recent price action. Despite the downward pressure, large investors are continuing to buy up LINK tokens, which could signal confidence in the asset at lower levels. Historically, whale activity has played a significant role in fueling bullish momentum, but this time it’s unclear whether their purchases will be enough to reverse the negative sentiment in the market.

However, the absence of strong retail FOMO (Fear of Missing Out) and the lack of major accumulation by larger investors in recent weeks are concerning. The decline in active participation and the shift in investor focus toward other cryptocurrencies—such as Bitcoin—has left LINK at risk of further weakness.

Conclusion: Near-Term Bearish Outlook for LINK

While the ongoing whale accumulation presents some bullish potential, the short-term outlook for Chainlink appears bearish. Without a significant reversal in sentiment or a reclaiming of key support levels, LINK could face a drop to the $14.75 level in the coming days. Traders and investors should be cautious and monitor the price action closely, especially the critical $17.45 support level. If LINK fails to bounce from this zone, further losses could be on the horizon, making it essential to watch the market’s next moves carefully.