Chainlink's Failed Retest of $12.5 Zone Sparks Bearish Outlook
12.04.2025 12:07
Chainlink (LINK) has been testing its key breakout level at $12.5, a zone that previously acted as support, but recent price action appears to flip it into resistance. On-chain data, coupled with increased exchange deposits and liquidation heatmaps from sources like CryptoQuant and CoinGlass, signal heightened selling pressure, hinting at a further decline. The retest of the breakout zone has not instilled confidence among bullish traders, and the technical outlook shows a convergence of bearish signals. If LINK fails to hold the $12.5 level, a drop toward $10 – potentially triggering liquidations – is anticipated, with further risk of a push down to $7.5. This bearish setup emerges amid a week-long decline and an overall indecisiveness in the broader market.
The news presents a bearish picture for LINK as technical indicators and liquidation data suggest a breakdown of the crucial $12.5 level. Short-term, the coin may face immediate selling pressure due to leveraged liquidations and increased exchange deposits, pushing the price toward $10. Longer-term, if the resistance holds and the bulls fail to re-establish control, LINK could face a sustained downtrend with risks of further dips toward $7.5. Factors such as the recent failure to post a higher high and the retest of previous support levels weigh heavily into this outlook, suggesting a cautious stance among investors.
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