- LINK hovers near $12.25, a key support zone for bulls.
- Whale holdings dropped while retail interest and accumulation signs increased.
- Network activity slowed, raising concerns about short-term upside momentum.
Chainlink — LINK, sits at a tipping point. One false step near $12.25, and the floor could give way. After snapping a year-long uptrend, price action looks shaky. A brief bounce offered hope, but the pressure hasn’t let up. Bulls are clinging to a key support level, while bears lurk just beneath, ready to strike. This moment feels like a slow-motion showdown—either strength returns, or a deeper fall takes over.
Bulls Face a Make-or-Break Moment
A recent breakout above a descending trendline had traders leaning bullish. But momentum didn’t follow through. LINK hovered around $12.67 at the time of writing, posting small daily gains. Still, weakness remained clear. Support at $12.25 now acts like a final defense line. If buyers can’t hold that zone, the next stops could land near $10 or even $7.50.
Despite the uncertain structure, one encouraging sign came from exchange data. Reserves dropped by 0.2% in just 24 hours, leaving 156 million tokens on trading platforms. Fewer tokens on exchanges usually point to reduced selling pressure. Some traders may already be shifting into accumulation mode, waiting for a breakout.
Fundamentals have shown a glimmer of strength as well. Chainlink’s partnership with Pi Network aims to improve decentralized apps by bringing in real-time data. This kind of tech upgrade boosts smart contract performance and may build long-term confidence. But so far, the market hasn’t reacted much. Most traders remain focused on the charts, watching for confirmation before jumping in.
Whales Pull Back, Retail Steps Forward
Large holders—often called whales—still control 46.1% of the LINK supply. That sounds hefty, but their share dropped by 1.41% over the past month. In that same window, retail investors quietly increased their presence. Wallets held by smaller buyers grew by 1.77%, and overall retail holdings edged up 0.36%. This shift suggests that confidence among everyday traders might be growing.
Still, overall activity tells a different story. New wallet creation plunged by over 44%. Active wallets dropped almost 50%. Even wallets with no funds saw a steep 56% drop. These declines paint a picture of a network that’s cooling off fast. Without more wallet activity and trading volume, any bounce could stall out quickly.
Bulls must hold above $12.25 and spark new interest across the market. If that happens, momentum could return and help price reclaim lost ground. If not, Chainlink may slide further into correction territory. For now, LINK’s price stands on a knife’s edge. One strong push could turn the tide—or break the support for good.
