Chainlink Price Dips 21% Amid Crypto Market Weakness, Whale Buys Signal Resilience

Chainlink (LINK) has experienced a recent price dip amid broader market weakness in the cryptocurrency sector, with the token falling to $23.85 on August 10, 2025. The broader market has shown signs of deterioration, with the total crypto market cap dropping to $3.82 trillion, a 2.69% decline in the previous 24 hours, and trading volume decreasing by 4.36% to $179.68 billion [1]. Despite the downward trend, Chainlink has shown relative resilience compared to some of its peers, maintaining a level of engagement from investors and institutions [5].

On-chain metrics highlight continued interest in the token, with Chainlink achieving a seven-month high above $26 on August 18. On that day, nearly 9,813 wallets conducted transfers, and 9,625 new wallets were created, signaling strong user activity and adoption [1]. Whale accumulation has also played a role in the token’s performance. On August 12, whale activity pushed the price above $24.80, though increased exchange reserves have led some traders to adopt a cautious stance [1].

Chainlink’s recent rally, including a 21% rise over the last month, has been fueled by growing wallet activity and strategic institutional partnerships [1]. However, the token’s Relative Strength Index (RSI) is currently at 71.4, suggesting the market may be becoming overbought. Additionally, a failed Fibonacci retracement attempt at $24.03 reinforced the potential for a correction [1]. This aligns with the broader market trend, where Bitcoin’s 2.5% drop triggered over $500 million in altcoin liquidations, adding further downward pressure on assets like LINK [1].

Looking ahead, long-term optimism for Chainlink is driven by the potential growth of tokenization in financial markets. As per an analysis by Nicu on X, Citi forecasts that tokenized private markets could grow 80 times by 2030, with Synpulse and Standard Chartered predicting a $30.1 trillion demand for tokenized assets by 2034 [1]. Given its role as an oracle service provider, Chainlink is well-positioned to benefit from this shift [1]. A majority of investors surveyed by BNY Mellon and Celent also believe tokenization will revolutionize asset management, further supporting Chainlink’s long-term appeal [1].

While the price dip is a reflection of the broader market’s volatility, it does not indicate a decline in interest in the token. The recent correction is viewed as a natural pause after a strong upward move, with profit-taking and short-term adjustments expected [1]. Moreover, the supply of LINK held on exchanges is at an all-time low, suggesting increased accumulation by institutional and whale investors [7]. This trend supports the view that long-term confidence in the token is growing [1].

As the crypto market continues to navigate macroeconomic uncertainty, Chainlink’s performance remains a focal point for investors. With whale buying activity, including the accumulation of 1.15 million LINK tokens, further reinforcing its short-term momentum, the token appears well-positioned to capitalize on ongoing developments in real-world asset tokenization [9]. Analysts have also highlighted Chainlink as one of the best altcoins to buy in August, citing its potential for real-world adoption and technological innovation [4].

Source:

[1] The, https://thecurrencyanalytics.com/altcoins/chainlink-link-price-surges-on-whale-buys-but-exchange-reserves-signal-caution-191321

[4] Barchart.com, https://www.barchart.com/story/news/34253614/4-altcoins-you-cant-ignore-in-august-cardano-pepe-chainlink-remittix-heating-up

[5] Mitrade, https://www.mitrade.com/insights/news/live-news/article-3-1049267-20250819

[7] Mitrade, https://www.mitrade.com/insights/news/live-news/article-3-1049028-20250819

[9] The, https://m.economictimes.com/crypto-news-today-live-18-aug-2025/liveblog/123350562.cms