Chainlink remained stuck in consolidation after losing the $20 level in 2025, with downside risks refusing to fade.

Price action stayed compressed beneath resistance, keeping bearish pressure alive despite brief relief rallies.

On-chain data showed Chainlink [LINK] continued to spend extended periods at a loss, echoing conditions seen near prior cycle peaks.

That backdrop left investors questioning whether this consolidation reflected accumulation or prolonged distribution.

As the dominant decentralized oracle network supplying off-chain data to smart contracts, Chainlink has survived past crypto winters.

Whether it could endure this phase without further damage remained an open question.

Whales aggressively buy LINK below $12

Whales had been circling LINK like vultures. Since LINK fell below $14, large players had been buying every dip, with their focus shifting to $12.

But let’s be honest—these whales weren’t acting out of love for the project. They were capitalizing on the bleeding, picking up scraps while LINK struggled to find support.

Despite their aggressive moves, the lack of clear bullish momentum made these whale moves seem more opportunistic than a sign of future growth.

As usual, these whales could have been the ones profiting the most from a continued downward spiral.

Chainlink loses 50% and 61% on the Fib retracements

On the 4-hour chart dated the 29th of January, LINK’s RSI dropped to 36.44, hovering just above oversold territory.

At the same time, price lost the 50% and 61% Fibonacci Retracement levels near $12.99–$13 and $12–$12.50. The major support between $11.37 and $11.64 on this time frame was also slipping away.

The loss of these critical retracement levels suggested that LINK was too weak to mount a meaningful comeback anytime soon.

Unless it reclaimed the 61% and 50% levels, the market appeared to be in serious trouble. A market that couldn’t hold these levels was a market in danger.

LINK forms a bearish head and shoulders pattern

On the daily timeframe, LINK printed a clear bearish head and shoulders pattern.

The neckline near $10.06 marked a critical line, with a confirmed break opening downside risk toward $4.91.

The left shoulder, head, and right shoulder formed beneath repeated rejections near $27, reinforcing the bearish setup.

Unless LINK reclaimed the $14 region decisively, bulls appeared sidelined, leaving sellers in control.

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Final Thoughts

• LINK stayed weak after losing key Fibonacci levels near $13, with RSI showing fading momentum and sellers still in control.
• Chainlink whales bought below $12, but the price failed to reclaim $14.

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