Chainlink Faces Potential Decline: Key $12 Support Must Hold to Avoid Further Losses

• Chainlink (LINK) faces critical price support at $12, a threshold significant for potential recovery or further decline in the crypto market.

• The LINK price has seen an 11% drop in the last 24 hours, necessitating keen observation of market trends to gauge potential rebounds.

• “A strong reaction at the $12 support may trigger a move back towards the $16-$18 range,” noted a COINOTAG analyst, signaling the importance of this level.

This article examines Chainlink’s critical support at $12, the implications of recent price movements, and what the future holds for LINK holders.

Understanding the Current Market Dynamics for Chainlink (LINK)

The recent trading activity of Chainlink has positioned the cryptocurrency at a crucial juncture, particularly as it trades around $12.00. This price point is a vital support level that, if maintained, could pivot the market sentiment from bearish to bullish. However, failure to hold this level may result in a retest of $10 or even lower values.

Analyzing Key Price Movements and Market Sentiment

The 4-hour price action reveals multiple Change of Character (CHoCH) and Break of Structure (BOS) indications, suggesting shifts in momentum and market structure. The bearish momentum has been accentuated by a sweep of equal highs near $16, leading to a confirmed breakdown below $14.03, thereby solidifying a bearish outlook for the token.

Investors are closely monitoring volume and candle patterns near the $12 mark, as the next few trading sessions could determine whether Chainlink rebounds or dips further.

Critical Analysis of Support Levels and Potential Outcomes

The implications of current price levels are highlighted by Chainlink’s “In/Out of the Money Around Price” analysis. It indicates that around 43.78% of addresses are “In the Money,” representing approximately 674.2 million LINK, which provides a robust support base at the $12 mark. Conversely, approximately 55.19% of the addresses are “Out of the Money,” which presents significant resistance if LINK attempts to rise above current levels.

The Role of Active Address Profitability in Current Trends

Further examination of the “Active Addresses by Profitability” shows that a significant portion of LINK holders—54.46%—purchased their assets at prices below $12. This suggests a collective vested interest in defending current price levels. The likelihood of a downward slide below $12 could erode this support, pushing the asset into a precarious position near $10, where there is scant crowd-supported buy pressure.

Source: Trading View

Conclusion: What Lies Ahead for Chainlink Investors?

In summary, Chainlink sits at a pivotal $12 support level. A sustained hold here could allow LINK to recover towards $16-$18, with bullish sentiment returning to the market. Conversely, a drop below $12 might lead to price challenges at $10 or lower, triggering a bearish phase. As such, investors should remain vigilant and responsive to changes in volume and price patterns surrounding this critical support area.