Chainlink Price Prediction: $12.5 Resistance Could Trigger Further Losses

Chainlink Price Struggles Below Key $12.5 Level: Bearish Momentum Building?

Chainlink Price Prediction – After a week of consistent decline, Chainlink (LINK) is now facing a critical resistance level at $12.5 — a zone that previously acted as strong support. The current price action appears to be a retest of this former support level, which could now flip into resistance, raising concerns about LINK’s short-term bullish momentum.

Despite a broader market that remains largely indecisive, LINK has failed to register a higher high since peaking near $16, casting further doubt on the strength of its recent rally. The altcoin’s retest of a descending trendline around $12.5 without a convincing rebound suggests a weakening market structure.

On-Chain Metrics Signal Caution for LINK Bulls

Recent on-chain data from CryptoQuant adds to the bearish sentiment. Net exchange deposits for LINK are currently slightly above the 7-day average, indicating a modest increase in selling pressure. When investors move assets from decentralized platforms to centralized exchanges, it often implies an intent to sell, particularly during periods of uncertainty.

Though the uptick in deposits remains moderate, its timing aligns with technical weakness, reinforcing the bearish bias in LINK’s current setup.

Liquidation Clusters Suggest Risk of Drop Toward $10

Further risk comes from liquidation heatmaps, which show a cluster of long liquidation levels near $10. In volatile markets, these zones often attract market makers seeking liquidity, which could spark a cascade of liquidations if prices trend lower.

Should LINK fall below the $12.5 threshold, it could quickly test the $10 level, and if liquidation pressures persist, a further drop toward $7.5 — a key high from Q4 2023 — may come into play.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.