Analyst Warns Chainlink Price Could Decrease by 50% If Key Support Is Breached

Trust in our rigorous editorial policy, which prioritizes accuracy, relevance, and impartiality, upheld by industry experts and subject to meticulous review. Chainlink is nearing a critical technical threshold as downside risks increase, according to a crypto analyst. A recent technical assessment highlighted that LINK's current weekly structure could leave the market vulnerable if the crucial support level around $10 falters. Presently, the price remains above this threshold, but a significant drop below it could swiftly alter market sentiment to a bearish outlook. Notably, a well-known crypto analyst, CryptoBullet, has indicated that the weekly chart for LINK has formed a classic head and shoulders pattern, which is deemed bearish in technical analysis. A confirmed breakdown beneath the neckline resistance would validate this bearish pattern. The study has also shown that the left shoulder was established during the early phases of the 2024 recovery, succeeded by a higher peak marking the head in early 2025, followed by another lower high finalized in the second half of 2025 that completed the right shoulder. The most critical area to monitor is the neckline support, which is presently in the $10 to $11 range and has served as structural support during multiple pullbacks as the head and shoulders pattern developed. Until the price remains above this level, the pattern remains unconfirmed. The analyst cautioned that a decisive weekly close beneath the neckline would trigger the anticipated bearish trend. Should a confirmed head and shoulders breakdown occur, it typically leads to a measured move equal to the height of the pattern, suggesting a potential downside target for LINK in the $4 to $5 range, representing a potential 50% decline from current levels. CryptoBullet characterized this scenario as the lowest point LINK could reach within this year, contingent upon significant selling pressure following an immediate failure of support. Additionally, an intermediate level could potentially act as a buffer, preventing a drop to $4, with a more conservative target around $7.15 related to significant volume profile levels. Currently, LINK is trading at $11.98, reflecting a 1.1% increase over the past 24 hours but down 5.4% over the week. A rebound from the neckline area could shift the short-term outlook toward a relief bounce.