Chainlink Slides as Volatility Spikes, LINK Tests $12 Support Zone

Chainlink faced renewed bearish pressure in late January 2026, trading near the $12.20–$12.50 range after a sharp retreat from recent highs. Market activity reflected heightened volatility, weaker retail participation, and declining staking balances, signaling caution across spot and derivatives markets as broader crypto sentiment remained fragile during global risk recalibration.

As regards the prevailing prices, the trading price of each share of the firm, as reported on the day of publishing, was $12.33, reflecting a decline over the last 24 hours amounting to a loss of 1.02%.

The trading volume during the last 24 hours was reported to be $427.06 million, while its market capitalization was recorded to be $8.73 billion.

Source: CoinGecko

Chainlink Faces Key Resistance Around $13.00

Technical analysis from CRYPTOWZRD highlighted indecision in the day close of Chainlink, which aligned with the overall market tone observed in Bitcoin.

Source: X

Based on the analysis, rejection at the $13.00 level could confirm the short position setups, while continued acceptance above the resistance level could support cautious long position setups. 

Daily candles on the LINK/BTC and LINK markets were indecisive, with the LINK/BTC candles touching support. A positive reversal will require support at current levels with a change in Bitcoin Dominance trends that produce bullish reversal signals.

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Derivatives Positioning And Liquidation Risk

Derivatives information from CoinGlass highlighted the growth of long-leveraged positions regardless of the uncertain structure of the prices. Liquidation levels on the exchange pointed to high leverage being positioned on the $11.88 support levels as well as the $12.72 resistance levels.

Today, approximately $7.81 million in long positions as well as $2.08 million in short positions can be found on the intraday books of the top centralized exchanges worldwide.

Source: CoinGlass

Overall, the distribution of leverage implies that intraday traders are anticipating downside protection around $11.88, further strengthens intraday bullish conviction.

However, indecision in higher-time-frame markets keeps the level of risk high. The near-term trend of Chainlink is subject to Bitcoin price action, dominance, and the development of stronger markets globally.

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