Chainlink at Risk? $12.5 Retest Could Flip Support into Resistance

Chainlink’s price action around the $12.5 zone has analysts watching closely, as this key support level may soon flip into resistance. With on-chain and liquidation metrics flashing bearish warnings, LINK holders may face further downside if bulls don’t reclaim momentum. Is a drop to $10 or even $7.5 next?

Chainlink Retests $12.5 With Weak Bullish Momentum

Chainlink [LINK] is hovering near the $12.5 level, previously a critical support zone. However, recent price action suggests a possible retest of this level as resistance. The asset has failed to post higher highs after peaking near $16, suggesting a weakening trend structure.

Notably, LINK has also tested a descending trendline without a convincing bounce. This rejection points to a likely bearish continuation, especially in an indecisive broader crypto market.

Chart 1- Showing LINK retesting $12.5 resistance, published by trading view

On-Chain Data Supports LINK Bearish Outlook

On-chain data further reinforces the LINK bearish outlook. According to CryptoQuant, net exchange deposits have slightly exceeded their 7-day average — a signal that investors may be preparing to sell. Typically, higher exchange deposits correlate with short-term selling pressure, especially when technical indicators already lean bearish. 

Though the spike wasn’t dramatic, its timing alongside the failed retest adds weight to bearish projections. This combination of weak technical support and increasing sell-side liquidity shows that bulls must reclaim strength quickly to avoid a deeper correction.

Liquidation Zones Suggest Drop Toward $10 and $7.5

In the derivatives market, leveraged traders may accelerate the downward move. Data from CoinGlass reveals a cluster of long liquidation levels around the $10 zone, creating an incentive for market makers to push prices lower in pursuit of liquidity. Should LINK dip below $10, forced liquidations could trigger further selling pressure, opening the door to a possible move toward $7.5 — a previous high from Q4 2023. With visible liquidation pools beneath current price levels and a weak bounce from support, the path of least resistance for Chainlink seems to be downward for now.

Conclusion: Chainlink’s Support Retest Could Turn Into a Breakdown

The $12.5 Chainlink retest may end up confirming this level as new resistance unless bulls step in quickly. With increasing exchange deposits and liquidation targets just below, the bearish case is growing stronger. If $12.5 fails, traders should watch $10 as the next major target — and if that breaks, $7.5 could be on the horizon. While long-term fundamentals for Chainlink remain solid, current technicals and sentiment suggest caution in the short term.