Chainlink (LINK) Tests $13 Support as Technical Analysis Points to Potential Drop Toward $8

Chainlink (LINK) is consolidating near the $13 support level, with technical analysts closely watching for a potential breakdown that could push the price toward the $8 region. The asset is currently trading at approximately $13.91, having declined 0.30% in the last 24 hours, with a market capitalization of $9.71 billion and 24-hour volume of $689.14 million.

The price action is framed by a long-term rising trend channel that has defined LINK's structure throughout 2024 and 2025. After breaking below the channel's midline, LINK has returned to retest the breakdown point near $13.50. This level, along with the 0.618 Fibonacci retracement level at $13.77, now forms a crucial technical battleground for short-term direction.

Analysts present a cautious to neutral outlook, noting the market's indecisive daily closes. Analyst CRYPTOWZRD highlighted that a brief move below $13.50 followed by a bullish reversal could create a favorable long setup. Conversely, sustained trading below $13.50 would signal weakness and open short opportunities. The immediate resistance is a descending trendline from the November high, currently around $15.20.

Technical indicators offer mixed signals. The MACD histogram has turned positive, suggesting improving short-term momentum, though a full crossover is not yet confirmed. The Chaikin Money Flow (CMF) reads +0.09, indicating positive capital inflow and potential accumulation near the $13.50 support zone.

The projected technical path points lower. Chart analysis shows a dotted projection where LINK could drift toward the 0.382 Fibonacci level at $10.02, with a further extension to the 0.236 level at $7.92. These levels align with earlier pullback zones within the larger channel, which has historically ranged between $6 and $22. The outcome of the current retest is seen as a pivotal moment that could shape LINK's price action into early 2026.