Chainlink Braces for 17% Drop as Tariff Tensions Escalate – What’s Next for LINK?

Markets flinch as geopolitical tremors threaten another crypto casualty. Chainlink—the oracle network powering DeFi’s backbone—now faces a brutal stress test.

Tariff wars spark sell-off panic

No one’s safe when old-school trade wars collide with digital asset volatility. LINK’s 17% potential plunge isn’t just a chart pattern—it’s a referendum on crypto’s fragility against macro shocks.

The roadmap through turbulence

Watch for whale accumulation near key support levels. History says infrastructure tokens like Chainlink rebound harder after geopolitical shakeouts—assuming the network keeps delivering those critical off-chain data feeds without a hitch.

Meanwhile, traditional finance bros will blame 'speculative excess' while quietly laddering into positions. Some things never change.

Traders show interest in shorting LINK 

As of the 8th of July, traders appeared to have a bearish market outlook, betting heavily, per on-chain analytics tool CoinGlass.

Traders were over-leveraged at $12.99 on the lower side (support) and $13.83 on the upper side, levels where strong interest has been observed.

Source: CoinGlass

On-chain data showed that traders have built $5.87 million worth of long positions and $8.64 million worth of short positions. Thus, LINK was currently bearish and looked poised for a price drop.

In addition, LINK’s Long/Short Ratio stood at 0.935. 48.32% of traders were betting on long positions, while 51.68% were positioned short at press time.

Source: CoinGlass

Current price momentum 

At press time, LINK was trading NEAR $13.49, having recorded a modest price dip of over 0.55% in the past 24 hours.

This price drop amid tariff tension has not only reinforced the bearish outlook among traders but has also reduced investor and trader participation.

Data from CoinMarketCap revealed that LINK’s trading volume over the past 24 hours has dropped by 12% compared to the previous day.

Chainlink: Key levels to watch 

AMBCrypto’s technical analysis revealed that LINK was at a make-or-break point at press time.

For over two weeks, the asset has been consolidating within a tight range and has now reached a key resistance level, formed by a descending trendline.

Source: TradingView

Historically, whenever the price has reached this level, it has faced rejection and recorded a decline. This marks the fourth time the asset has tested this resistance.

Potential upcoming levels for LINK token 

If market sentiment remains unchanged and the price drops below the $12.70 level, a potential 17% decline could follow.

On the other hand, if sentiment shifts and the price breaks above this prolonged resistance and closes a daily candle above the trendline, it could open the path for a strong upside rally.

At press time, LINK is trading below the 200-day Exponential Moving Average (EMA) on the daily time frame, indicating that the asset is in a downtrend.

This trend could only reverse if the price breaks above the 200 EMA and the $16 resistance level.