Chainlink price prediction [LINK]: Be cautious with this support level

* LINK has recovered the daily resistance level as the bulls defend 12.25 USD in the context of slight upward momentum.

• On-chain activity has decreased significantly, but fundamental factors and reserves have suggested potential for recovery.

Chainlink [LINK], at the time of writing, is retesting the key breakout zone after breaking a year-long upward resistance. This seems to imply a decisive moment for the altcoin’s short-term direction.

In fact, although there has been a temporary recovery, the level of 12.25 USD has become a crucial battleground for the bulls to regain dominance. If this support level is not maintained, downside targets at 10 USD and 7.50 USD may come into focus.

Technically, LINK has recently surpassed the declining resistance level on the daily chart – suggesting a potential trend reversal. However, momentum remains weak, and the price may still persist in the important support area.

At press time, LINK is trading at $12.67 after gaining 0.41% over the past 24 hours. The bulls must sustain pressure above $12.25 to confirm a sustained reversal.

Source: TradingView

New partnerships and declining reserves – Are the fundamentals triggering a recovery?

Recently, Chainlink announced a strategic partnership with Pi Network, aiming to improve decentralized applications through real-time data integration. The move strengthens Chainlink’s smart contract capabilities and could be a long-term bullish factor.

However, the reaction from the market has so far been muted, suggesting that traders may focus more on technical structure rather than fundamentals in the short term.

Meanwhile, the data from the exchange reserves shows a decrease of 0.2% in the past 24 hours, with the total amount of LINK on the exchanges currently at 156 million. The decrease in the supply held on the exchange implies reduced selling pressure, often seen during accumulation phases. If this trend continues, prices may find support as demand begins to rise.

! Chainlink [LINK] Price Prediction: Beware of This Support Level - Bitcoin News - Latest Coin News Updates 24/7 2025 Source: CryptoQuant

What do investors’ behaviors suggest?

Currently, whales control 46.1% of the LINK supply. However, their holdings have decreased by 1.41% over the past month.

On the contrary, the participation of retail investors increased by 1.77% and their total LINK slightly rose by 0.36%. This redistribution may indicate a growing preference from smaller market participants, despite a decrease among whales.

! Chainlink [LINK] Price Prediction: Beware of This Support Level - Bitcoin News - Latest Coin News Updates 24/7 2025 Source: IntoTheBlock

On the contrary, the activity of the address suggests that traders are still staying out. New addresses were down 44.25%, active addresses were down 49.5%, and addresses without balances were down 56.62% over the past week.

The slowdown in network activity may limit the short-term upside potential of LINK unless volume and participation return across the market.

Conclusion

The current structure of Chainlink shows a market in a neutral position – caught between potential structural changes and a decline related to on-chain activity. The support level of 12.25 USD remains the closest defensive line for the bulls, supported by lower reserves on exchanges and positive developments such as the Pi Network partnership.

However, the decline in user activity and reduced participation from whales creates caution. A strong rebound from the current level could trigger momentum, but failure to maintain it could pull LINK into deeper territory of price adjustment.

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