Chainlink price fell to $15.68, down 20% from its July high, as the wider crypto market experienced a sharp sell-off.
Whale holdings of Chainlink increased 13% in a month, while supply on exchanges dropped, reducing selling pressure in the market.
Technical indicators suggest Chainlink may be entering the third phase of the Elliot Wave pattern, targeting a rise toward $25.60.
Chainlink dropped to $15.68, marking a 20% decline from its July peak. The broader crypto market also saw losses as Bitcoin and most altcoins fell sharply.
The decline followed the introduction of tariffs by President Donald Trump on countries including South Africa, Switzerland, and India.
Market sentiment weakened further after the Bureau of Labor Statistics reported that only 73,000 jobs were created in July, while the unemployment rate rose to 4.2%. The announcement was followed by the dismissal of the bureau’s head.
Whale Accumulation Strengthens
Despite the decline, large investors have been steadily increasing their Chainlink holdings. Data from Nansen shows that whales now hold 3.84 million LINK tokens, up from 3.38 million on July 5. This marks a 13% increase in just one month.
Source: TradingView
The amount of LINK held on exchanges has dropped from 283 million tokens in July to 276.88 million. A lower exchange balance often suggests reduced selling pressure, which can support price stability.
Space and Time Token Claim Nears Deadline
A potential short-term catalyst is the nearing end of the claim period for Space and Time (SXT) tokens. The project allocated 4% of its SXT supply to Chainlink ecosystem participants, with the first 100 million tokens valued at $8 million. The claiming window closes on August 8.
Chainlink has moved below key support at $17.96 and the 61.8% Fibonacci retracement level of $16.82. The price recently touched the 50-day moving average. Analysts note that LINK appears to be in the second phase of the Elliot Wave pattern, with a possible third phase pushing it toward $25.60, which would be a 62 percent gain from current levels.
