Chainlink’s Price Drama: Will It Sink or Swim? 🤔💸

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  • Oh dear! LINK’s little dance at the $12.5 breakout zone suggests a gloomy bearish continuation!
  • On-chain and liquidation data are waving their flags, signaling a potential plunge towards $10 and $7.5!

Once upon a time, in the land of Chainlink [LINK], our dear altcoin was having a rather unfortunate week, testing a rather prickly resistance zone at $12.5 — a place that used to be a cozy support. It seems our brave little LINK is trying to retest this breakout zone, but alas, it might just flip into a rather nasty resistance! Oh, the drama! 😱

But wait! If the bullish knights don’t hold their ground, LINK could tumble down the rabbit hole into a more significant pullback. The market is as indecisive as a cat in a room full of rocking chairs, and LINK’s recent wobbles have been quite expected. 🐱

To add to the suspense, our dear LINK hasn’t managed to reach a higher high since it peaked at a whopping $16. What a shame! 😢

Retesting the descending trendline at around $12.5 without a proper bounce is like trying to jump on a trampoline made of jelly — it’s a sign of a weakening structure, my friends!

LINK’s gloomy setup backed by on-chain data

As we pen this tale, on-chain data seems to be giving little comfort to LINK’s brave bulls. According to the wise folks at CryptoQuant, net deposits for our altcoin on exchanges are just a smidge above their 7-day average. This usually means that selling pressure is lurking like a sneaky fox! 🦊

Higher net deposits typically mean investors are pulling their shiny coins from decentralized exchanges and sending them off to centralized exchanges, ready to sell. Oh, the treachery!

Now, while the uptick didn’t break any records, it did align with a rather bearish technical outlook. This convergence might just justify LINK’s gloomy bias on the charts. 📉

Liquidation clusters hint at a further drop past $10

Finally, our dear leveraged traders might just have a hand in LINK’s price trajectory. Liquidation heatmaps have revealed a cluster of long liquidation levels near the $10-mark. Market makers love to hunt these liquidity zones during uncertain times — it’s like a game of hide and seek! 🎭

If LINK decides to waddle towards $10 and triggers those liquidations, we could see a cascade of selling pressure. Oh, what a sight that would be! Then, another push to $7.5 — the previous high of Q4 2023 — might just be on the cards! 🎢

To avoid deeper losses, the $12.5 zone must hold firm like a stubborn mule. With elevated exchange deposits and visible liquidation pools lurking below, the path of least resistance is looking decidedly south for now. 🐴

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2025-04-12 10:21