Chainlink was a reflection of the fearful tone that dominated the crypto-market. The retail market remained quiet as the volatility of major altcoins decreased, causing LINK to consolidate its price.
Chainlink’s Total Value Securing (TVS), which is the total value of all transactions secured by Chainlink, was $46.03 Billion in December. This represents a 2.43% increase month-overmonth. The measure suggested that on-chain use was steady despite the muted prices.
The report did not indicate a change in direction.
Chainlink [LINK] The selling pressure stabilised across all sessions. Buyers defended $12.5 zone as of the press time. This defense stopped a rapid decline in demand.
After wedge breakout, momentum stalls
Chainlink broke out earlier from a falling wedge in the daily timeframe. This breakout changed the structure of the market from one of decline to consolidation.
However, follow-through buying After the move, remained restricted.
TradingView
Momentum indicators highlighted short-term weakness. The MACD daily printed a cross-death, reflecting bearish movement. RSI formed a divergence that was also bearish, and signaled buyer fatigue.
Binance has been the focal point of whale activity
Whale-tracking revealed notable withdrawals of exchange.
The 20th December saw the debut of a new e-commerce site. created Wallet has withdrawn 199.520 LINK, valued at approximately $2.49million, from Binance. Transfer occurred as LINK was moving sideways and near support.
Next day the wallet removed another 246,259 Link, which was worth an additional $3.08 Million. The wallet had 445 779 LINK after both withdrawals.
Outflows of exchange echoed accumulation phases earlier
CryptoQuant’s exchange data indicated a declining LINK stock on exchanges. These outflows have historically been associated with phases of accumulation, rather than distribution.
The deposit increases that are a result of panicky behavior is the opposite.
Source: CryptoQuant
During 2019–2020, similar exchange outflow patterns were observed ahead of the 2021 expansion. A similar structure appeared again during the 2022–2023 period, before the 2024 rally. The behavior of exchange outflows in 2025 was similar to both phases.
Can LINK maintain KEY’s support in the face of retail caution?
The $12–$12.5 zone acted as a critical structural support. Bulls need to be able to keep this area under control to protect the structure.
Failure risked a slide toward the $9–$10 demand zone.
The $27 level remained the major barrier to upside. If the level is broken, it opens up the possibility of range highs.
Prior to that, the price trend favored consolidation rather than expansion.
Last Thoughts
- Chainlink’s pricing reflected caution but the underlying flow suggested that positioning was more important than panic.
- The consolidation phase can be used as an interim stage rather than to signal a break-down if support is maintained.
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Source: ambcrypto.com
