Chainlink's LINK Drops 15% In Week, Tests Key Support At $13.15

Chainlink's native token, LINK, experienced a notable 15% decline over the past week, prompting discussions among analysts and investors about its future direction. The token's price hovered near $13.15, testing a support zone that has historically sparked rallies. The price action remained within a descending trendline, with traders anticipating either a breakout or a further 20% decline.

The sell-off caught the attention of market participants, with many betting on a rebound. However, opinions varied on the token's next move. Some experts suggested that LINK was at a crucial point, while others saw strong upward potential. An analyst predicted that if LINK fails to bounce off the $12.50 support level, it could face significant trouble. Conversely, others believed this zone could reignite LINK's momentum. Despite broader market sentiment being clouded by geopolitical tensions, LINK's technical setup at this level has become a focal point for both bulls and bears.

At the time of reporting, LINK traded near $13.15 with a slight daily uptick of 0.55%. Trading volume surged by 10% within 24 hours, indicating that market participants were re-entering the market. Data showed $16.2 million in outflows from exchanges over the last week, suggesting strong accumulation. This could help reduce sell pressure and support price recovery if it persists. Additionally, traders have been strongly betting on the bullish side, with $9 million in long positions concentrated around the $12.55 mark, while shorters built $3 million in positions near $13.35. These levels indicate that bulls are currently dominating the altcoin.

Technical analysis by AMBCrypto suggested that LINK appears bullish and poised for a potential price reversal. The daily chart revealed that the current level of $13.15 is an area where LINK has previously shown upside momentum since late April 2025. The $12.65–$13.15 zone has historically seen rebounds, and a hold here could target the $15–$16 resistance. However, if LINK slips below $12.50 and closes under it on the daily chart, a 20% drop toward $10.15 could follow.

Despite the recent drop, many analysts remain optimistic about the long-term prospects of Chainlink and LINK. Chainlink's infrastructure is designed to provide reliable and secure data feeds to smart contracts, making it an essential component of the DeFi ecosystem. As the adoption of DeFi continues to grow, the demand for Chainlink's services is expected to increase, which could drive the value of LINK higher in the long run. Additionally, Chainlink has been actively expanding its partnerships and collaborations with other blockchain projects and traditional financial institutions, which can help gain more traction in the market and attract new users to its platform.

However, it is important to note that the cryptocurrency market is highly volatile, and the value of LINK can fluctuate significantly in the short term. Investors should be cautious and conduct thorough research before making any investment decisions. The recent drop in LINK's value presents an opportunity for investors to enter the market at a lower price point, but it is also important to consider the potential risks and uncertainties associated with investing in cryptocurrencies.