Why Chainlink Could Drop to $13 Despite Developer Activity Surge?

Analyzing the weekly time frame chart for Chainlink (LINK/USDT) showed significant resistance and support levels that are critical for determining future price movements.

Currently, Chainlink price is hovering around $15.22, with a potential drop anticipated to the key support level at $13.27 in the coming sessions.

Historically, this level has acted as a strong psychological barrier where previous rebounds have occurred, suggesting a possible price stabilization and subsequent bounce could happen if this level is tested again.

If Chainlink (LINK) manages to hold at $13.27, we could witness a rebound towards the next significant resistance level at $19.40, mirroring previous recovery patterns observed in 2024 when prices surged after testing similar lows.

Conversely, if the $13.27 support breaks, a further decline towards the $9.50 zone might be inevitable, potentially setting new lows for future consolidations.

This scenario emphasizes the importance of the $13.27 level as a decisive point for LINK’s short to medium-term price trajectory.

Data from other months showed that LINK tends to recover post-testing major support zones, suggesting a potential repeat of these patterns if the current support holds.

RSI Indicator Says Chainlink’s Bearish Momentum Continues

Further analysis of the LINK/USDT pair exhibited bearish momentum as indicated by the Relative Strength Index (RSI) currently at 33.21, suggesting a state of approaching oversold conditions.

This was accompanied by a decline in the MACD sell volume, hinting at a potential slowdown in bearish pressure.

Historically, when the RSI nears oversold levels below 35, LINK has shown tendencies to rebound, pointing to a possible price recovery.

Given the MACD’s reduction in negative momentum, a bullish crossover could be imminent, signaling a shift in trend.

If the RSI continues to dip below 30 and then reverses with increasing buy volumes, LINK could see a recovery rally, possibly retesting resistance near the $20 mark.

Conversely, if the bearish momentum persists without a significant decrease in sell volume, Chainlink (LINK) might test lower support levels, potentially dropping below $14 as seen in previous months.

This setup suggested a critical juncture where upcoming trading sessions will be pivotal in determining if LINK can see a price reversal or if it will continue to face downward pressure.

Top Projects 3 by Developer Activity

However, LINK ranked second among the top crypto projects in developer activity over the last 30 days, as shown in the latest data from Santiment.

With a score of 654, LINK trails only Internet Computer (ICP), which leads at 737.33, and slightly ahead of Optimism (OP) at 456.17.

This surge in developer activity suggested strong ongoing enhancements and potential new functionalities within the Chainlink ecosystem.

Comparatively, projects like Cardano (ADA) and Starnet (STRIK) also show substantial activity, scoring 454.97 and 426.83, respectively.

This highlighted a robust development environment across various platforms aimed at scaling, smart contracts, and protocol improvements.

Ethereum (ETH), although lower at 321.73, still indicated significant activity, emphasizing its role in smart contract and dApp development.

The high developer engagement in LINK could translate into enhanced platform capabilities and increased trust in its oracle solutions, potentially boosting LINK’s position and investor confidence.

Conversely, a slowdown in this momentum might lead to stagnation in technological advancements, impacting investor sentiment negatively.