Chainlink price prediction: Will LINK drop 40% to $7 by 2026?

Chainlink Under Fire: Market Context

The cryptocurrency market is going through a phase of intense volatility, and Chainlink (LINK) is no exception. Currently, the token is trading in a range between $12.20 and $12.40, showing a slight decline of around 2% over the last 24 hours. Despite this apparent drop, network activity remains frenetic, with trading volume fluctuating heavily, reflecting trader indecision.

Attention today is focused on one very specific level: $11.90. This threshold is not insignificant; it has acted as a true bulwark for buyers for several months. But more importantly, it is now a vital point that corresponds to its massive bullish trendline on the HTF. A breakdown below this trendline would be catastrophic.

Beyond price action, Chainlink’s fundamentals remain solid. According to on-chain data, the project continues to dominate the DeFi sector in terms of development activity, a signal often indicative of positive underlying movements in the medium term. However, the market reacts in real time, and for now, it’s technical analysis that’s calling the shots.

Technical Analysis: Why Is the $11.90 Level Vital?

Analysis of the daily chart reveals that LINK is dangerously flirting with its key support at $11.90. This level has proven its robustness time and again, particularly since November 2025, where it served as a springboard for several significant trend reversals. Historically, each test of this zone has been followed by a vigorous buying reaction.

However, major technical obstacles stand in the token’s path: the 50-day Exponential Moving Average (EMA) and a major POC at $14. Currently, LINK’s price is trading below this indicator, which technically translates to a bearish momentum in the short term. As long as the price doesn’t clearly move back above this EMA, caution remains warranted for trend traders.

Scenarios: Explosion Toward $14 or Free Fall?

Two main trajectories are emerging for the coming days, depending entirely on the market’s reaction at the current support.

• Bullish Scenario: If buyers manage to lock in the $11.90 level and push the price higher, the immediate technical target sits around $14. Such a move would represent an appreciation of approximately 15% from current levels. This scenario would require renewed volume to confirm the bounce and break through the dynamic resistance of the 50 EMA.
• Bearish Scenario: Conversely, a clean and confirmed break on a daily close below $11.90 would be an alarm signal. This could open the door to a deeper correction down to the next historical demand zone between $8 and $6.

The good news is that a return to $7 for LINK would be a generational opportunity as this zone offers concrete support for its price. Particularly because demand at this level will likely be explosive.

Should You Position Yourself on LINK Before the Next Move?

The crypto market has accustomed us to spectacular reversals. With Chainlink compressed between major support and dynamic resistance, volatility is about to explode. But for now, it’s better to wait because the risk of a nearly 40% drop still looms.

As the DeFi sector continues to build, LINK remains an essential barometer of ecosystem health. Its fundamentals make it a crypto of the future that has every chance of surviving this difficult period for altcoins.

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