Chainlink (LINK) finds itself at a critical crossroads after breaching a year-long ascending trendline and now retesting the pivotal $12.25 zone. Despite a temporary rebound, this level has become a battleground, with bulls desperately trying to defend it. A failure here could push LINK toward deeper support levels at $10 and $7.50.
#Chainlink $LINK is retesting its breakdown zone. Holding above $12.25 is key, but if it fails, $10 and $7.50 could be the next areas to watch. pic.twitter.com/4VjyQ0mGQ0
— Ali (@ali_charts) April 14, 2025
Technically, LINK recently broke above a descending trendline on the daily chart, hinting at a possible trend reversal. However, the momentum remains underwhelming, and price action continues to hover around a make-or-break support level, raising concerns about sustainability.
On the fundamental front, Chainlink’s collaboration with Pi Network aims to enhance decentralized applications through real-time data integration—a bullish long-term development. Yet, the market’s muted reaction signals that traders may be prioritizing technical setups over new partnerships.
Meanwhile, on-chain metrics offer mixed signals. LINK’s exchange reserves dropped by 0.2% in the last 24 hours, bringing the total to 156 million tokens. This suggests declining sell-side pressure, often a sign of accumulation. If this trend persists, it could lay the groundwork for a recovery—provided demand also rises.
Investor behavior reflects a nuanced market sentiment. While whales still hold a dominant 46.1% of LINK’s supply, their holdings have dropped by 1.41% over the past month. In contrast, retail ownership has ticked up slightly, indicating growing interest from smaller investors.
Also Read: Pi Network Eyes $3 Breakout After Chainlink Adds PI to Data Feeds
However, network activity paints a more cautious picture. Over the past week, new addresses plummeted by 44.25%, active addresses dropped 49.5%, and zero-balance wallets declined 56.62%. This sharp decline in engagement could hinder LINK’s short-term upside.
Conclusion:
Chainlink stands at a technical and psychological tipping point. While positive fundamentals like the Pi Network partnership and shrinking exchange reserves offer hope, declining user activity and whale disengagement temper bullish expectations. A solid bounce above $12.25 could reignite momentum, but failure to hold this line may usher in a deeper correction phase.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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