Chainlink holds $12.5 amid fear – Can LINK avoid a deeper slide?

The broader crypto market traded under fear-driven conditions, and Chainlink reflected that risk-off tone. Retail participation stayed muted as volatility compressed across major altcoins, slowing LINK’s price action into consolidation.Chainlink’s Total Value Secured (TVS) stood at $46.03 billion, up 2.43% month-over-month. The metric suggested steady on-chain usage despite muted price movement.However, it did not confirm a directional shift.Chainlink [LINK] traded near $12.5 as selling pressure stabilized across sessions. As of press time, buyers defended the $12.5 support zone. That defense prevented an immediate move into lower demand levels.Momentum stalled after wedge breakoutChainlink had earlier broken out of a falling wedge on the daily time frame. The breakout shifted the market structure from decline into consolidation. However, follow-through buying remained limited after the move.Source: TradingViewMomentum indicators highlighted short-term weakness. The daily MACD printed a death cross, reflecting bearish momentum. RSI also formed a bearish divergence, signaling buyer exhaustion.Whale activity concentrated on BinanceWhale tracking showed notable exchange withdrawals.On the 20th of December, a newly created wallet withdrew 199,520 LINK from Binance, worth about $2.49 million. The transfer occurred while LINK moved sideways near support.The next day, the same wallet withdrew another 246,259 LINK, valued at $3.08 million. After both transactions, the wallet held 445,779 LINK.Exchange outflows echoed earlier accumulation phasesCryptoQuant exchange data pointed to declining LINK supply on exchanges. Such outflows are historically aligned with accumulation rather than distribution phases. This behavior contrasted with panic-driven deposit spikes.Source: CryptoQuantDuring 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. In 2025, exchange outflow behavior rhymed with both prior phases.Can LINK hold KEY support amid retail caution?The $12–$12.5 zone acted as a critical structural support. Bulls needed to hold this area to preserve the consolidation structure. Failure risked a slide toward the $9–$10 demand zone.On the upside, $27 remained a major resistance barrier. A clean break above that level opened the door to range highs. Until then, price action favored consolidation over expansion.Final ThoughtsChainlink’s price action reflected caution, but underlying flows suggested positioning rather than panic.If support continues to hold, the consolidation phase may act as a staging ground rather than a breakdown signal.