Chainlink (LINK), one of the leading blockchain oracle projects in the crypto space, is under increasing pressure as its token price continues to decline. In recent days, LINK has shown weakness, falling below critical technical levels, with experts now eyeing the possibility of a significant correction if support levels fail to hold.

As of the latest market update, LINK is trading just under $12, showing a sharp 6% drop over the last 24 hours. More concerning, however, is the 40% plunge in trading volume over the same period. This significant drop in participation suggests that investor interest is waning, and many traders may be staying on the sidelines due to rising market uncertainty.

A respected crypto analyst recently shared insight into Chainlink’s current position, warning that the price action is testing a trendline that has been intact since mid-2023. This long-term ascending trendline has historically acted as a foundation for price rebounds. Now that LINK is slipping beneath it, the analyst believes the token could decline further if the level isn’t quickly reclaimed.

From a technical standpoint, LINK is currently trading inside a falling wedge pattern — a setup that usually leads to a breakout, but only if bulls regain control. In the short term, the next important resistance is located near the $13.25 level. If LINK can close a daily candle above this resistance, it could open the door to a potential 30%–35% rally. Such a move might push prices toward the $17 zone, provided that volume and momentum also improve.

However, if the current downtrend continues, analysts warn that Chainlink could revisit support at $9.50 — and possibly even as low as $7.50. These lower levels are being eyed as critical zones where buyers could re-enter the market. If LINK fails to hold above $9.50, the next leg down could shake out weaker hands and cause further panic in the market.

The current bearish tone isn’t helped by the lack of new capital entering the ecosystem. A drop in volume during a price decline is often interpreted as a lack of conviction among traders. It means that fewer buyers are stepping in to support the price, which increases the risk of steeper losses if sell pressure intensifies.

Still, the market isn’t entirely without hope. Some investors are cautiously optimistic that LINK could bounce if broader market sentiment improves. Positive developments from the Bitcoin market or new partnerships in the Chainlink ecosystem could help revive demand. Moreover, falling wedge patterns are known to eventually result in bullish reversals — but only if the breakout is backed by strong buying interest.

For now, traders are closely watching the $13.25 and $9.50 levels as decision points. A move above the upper boundary of the wedge could confirm a trend reversal, while failure to hold the lower level may lead to extended losses.

In the meantime, Chainlink continues to be one of the most-watched altcoins due to its critical role in powering smart contract data feeds across multiple blockchains. But with volatility rising and sentiment shifting, the next few days could be pivotal in determining whether LINK can hold strong or slide further.