As the digital currency market experiences intense fluctuations, Chainlink (LINK) has entered a critical phase, testing its key support around $12.25. This price level is now seen as the boundary between a corrective trend continuation and the start of a new upward wave. While Chainlink has recently managed to break short-term downtrend resistance, buying pressure remains weak, with no strong signs of a powerful reversal. If the $12.25 support is breached, the possibility of LINK price dropping to $10 and even $7.5 increases. Alongside technical analysis, Chainlink’s data also provide somewhat conflicting signals. On one hand, the announcement of Chainlink’s collaboration with Polkadot could enhance the capabilities of this ecosystem’s smart contracts in the long term. On the other hand, although whales still hold 46.1% of LINK’s supply, their share has decreased by 1.41% in recent months. Conversely, a 0.2% decrease in LINK reserves on exchanges in the past 24 hours indicates a reduction in selling pressure and the possibility of entering an accumulation phase. However, a significant decrease in user activity on the Chainlink network, including a worrisome 44.25% drop in new addresses and around 50% decrease in active addresses in the past week, raises concerns. Overall, the current situation of Chainlink is complex. If the $12.25 support is maintained and trading volume increases, the likelihood of a new uptrend forming in Chainlink exists. Otherwise, the possibility of continued corrective trend and a return to lower levels remains. Visit the real-time digital currency price page to monitor the live prices of all tokens and cryptocurrencies.
