Chainlink has been stuck in a consolidation phase since dropping below the $20 level in 2025, with downside risks still looming.
The price has been struggling to break through resistance, maintaining bearish pressure despite occasional relief rallies.
On-chain data indicates that Chainlink has been experiencing prolonged periods of losses, similar to previous cycle peaks.
Investors are questioning whether the current consolidation phase is accumulation or prolonged distribution.
As a leading decentralized oracle network providing off-chain data to smart contracts, Chainlink has survived previous crypto winters.
The question now is whether it can weather this phase without sustaining further damage.
Whales Accumulating LINK Below $12
Large players have been buying up LINK below $14, with a focus now shifting to the $12 mark.
These whales are taking advantage of the price decline to accumulate more tokens, rather than showing support for the project itself.
Source: CryptoQuant
Despite the aggressive buying by whales, the lack of clear bullish momentum suggests their moves are more opportunistic than indicative of future growth.
These whales could potentially profit the most from a continued downward trend in the market.
Chainlink’s Fib Retracement Levels
On January 29th, LINK’s RSI dropped to 36.44, nearing oversold territory on the 4-hour chart.
The price also fell below the 50% and 61% Fibonacci Retracement levels, indicating weakness in the market.
Source: TradingView
The loss of these key retracement levels suggests that LINK may struggle to make a meaningful recovery in the near future.
LINK’s Bearish Head and Shoulders Pattern
On the daily timeframe, LINK has formed a bearish head and shoulders pattern, with the neckline around $10.06.
A confirmed break below this neckline could open up downside risk towards $4.91.
Source: TradingView
Unless LINK decisively reclaim the $14 region, bulls remain sidelined and sellers are in control of the market.
Final Thoughts
- LINK continues to struggle after losing key Fibonacci levels near $13, with sellers maintaining control and fading momentum.
- Chainlink whales are accumulating below $12, but the price has failed to reclaim $14.
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