Analyst Says Chainlik Price Could Crash 50% If This Level Fails
Chainlink is approaching a technically delicate space with a growing downside risk on greater timeframes that was flagged by a crypto analyst. Based on a current technical evaluation on X, the analyst famous that LINK’s present weekly construction leaves the market weak if an necessary help zone round $10 provides means.
The value motion continues to be holding above that area for now, however the chart exhibits {that a} decisive transfer under it may rapidly change the outlook right into a bearish temper.
Head And Shoulders Formation On Weekly Timeframe
According to a well-liked crypto analyst referred to as CryptoBullet on X, LINK’s weekly chart has carved out a commonplace head and shoulders formation. Based on the foundations of technical evaluation, the Head and Shoulders (H&S) sample is bearish. The sample resolves bearish when there is a confirmed break under the neckline resistance.
Technical evaluation of Chainlink’s value motion exhibits the left shoulder fashioned throughout the early phases of the 2024 restoration, adopted by the next peak that marked the pinnacle in early 2025. This was then adopted by one other decrease high that accomplished the fitting shoulder within the second half of 2025.
However, a very powerful zone to observe is the neckline help, which slopes barely upward and is at present sitting within the $10 to $11 area. This help zone has acted as structural help throughout a number of pullbacks whereas the pinnacle and shoulders sample was taking form, making it a very powerful stage to observe going ahead. As lengthy as the worth holds above it, then the sample is unconfirmed.
ChainLink Price Chart. Source: @CryptoBullet1 on X
Losing Support Level And Price Targets
The analyst cautioned {that a} decisive weekly shut under the neckline would activate the bearish setup. In technical evaluation, a confirmed head and shoulders breakdown is understood to open the trail to a measured transfer equal to the peak of the sample.
Applied right here, that projection locations LINK’s draw back goal within the $4 to $5 vary, which might symbolize nearly a 50% decline from present value ranges. CryptoBullet described this consequence because the lowest space LINK may attain this yr if there’s sturdy promoting strain, and that such a transfer would solely come into play if help fails in a short time.
Notably, the evaluation additionally pointed to an intermediate stage that might act as a stopping level that may cease LINK from crashing to $4. A extra conservative draw back goal is round $7.15, which is related with the Point of Control on the Volume Range Visible Profile and overlaps with the 2022 to 2023 accumulation zone that’s proven on the chart above.
At the time of writing, LINK is buying and selling at $11.98, up by 1.1% prior to now 24 hours however down by 5.4% in a seven-day timeframe. A rebound from the neckline space would shift the short-term outlook to a relief bounce.
