Chainlink [LINK] price continued to drop just like the broader crypto market that was in a massive downtrend from late December 2024 with short span of recoveries.
What Next After Chainlink Price Loses Key Support?
The critical ascending support line which Chainlink price broke down recently indicated that its previous bullish trend could have transitioned towards a full bearish season.
The level had supported the price since mid-2023 with traders repeatedly using it as an important level for entry. However, the break below $13 showed that bullish momentum had weakened.
The bearish force showed signs of increasing intensity which pointed toward LINK proceeding toward its initial support level at $9.50.
The price could fall to $7.30 then probe $6.00 as the bearish sentiment continues if the $9.50 failed to support a reversal.
However, the $12.00 zone remained crucial. If buying conditions strengthen enough at this congestion zone it could possibly switch market momentum.
If LINK was to recover the downward trendline, it could rise back to $15.00 before aiming for $19.00. After the trendline break, price formed new lower highs confirming the bearish market structure.
Long wicks extending around $12.00 could mean increased interest in LINK yet these wicks pointed to an unpredictable market behavior during its upcoming price action.
The short-term market might shift to recovery if Chainlink price can hold above $12.00 for significant time.
The ongoing decline pressure suggested LINK could continue dropping to $9.50 or even lower levels. Here, the $12.00–$13.00 area, held key importance for its future valuation.
LINK’s Key Demand Levels
Worth noting, LINK the $6 target for Chainlink was where massive acquisition amounting to 376.54 Million LINK occurred.
This significant outreach mass accumulation created the biggest profitable volume which could serve to protect against future price slides.
The average Chainlink (LINK) trading price reached $12.58 making 50.42% of owners profitable with 504.25M LINK but 44.77% of coin holders possessing 447.76M LINK faced losses.
A price drop below $12.25 could trigger mailboxing behavior from sellers attempting to limit their losses since this area represented a significant point between buyers and sellers.
LINK could utilize the current $6.26 demand wall to trigger a positive price rally if it decides to approach this level during this extended bear market.
4.80% of addresses were at the breakeven band while showing minimal area for remaining neutral.
The price storing capability at $12.25 could generate a small upward movement unless Chainlink prie drops below it which would drive the price nearer to this essential accumulation area.
Market Sentiment of Participants
Meanwhile, the institutional and retail traders had negative sentiments for LINK as of press time. The metric is highly dynamic.
Chainlink had a negative sentiment rating of -0.75 from the Crowd and -0.78 from institutional investors and smart money players.
Both market segments were some tempered wariness about LINK as their sentiment scores were still in the negative on the measurement scale.
The uniform bearish market position acted as a downward force on Chainlink’s price which could be set to continue.
The readings could signal completion of bearish capitulation phases yet also indicate that excessive bearish stance may transform into potential price stabilization.
The negative sentiment values suggested that traders anticipated LINK to drop even lower or stay consolidated until this trend changed.
