Analyst Warns Chainlink Price May Drop 50% If Key Support Fails

Chainlink is nearing a critical price zone that presents increasing downside risks, according to a recent analysis from a cryptocurrency analyst on X. The analyst highlighted that if Chainlink (LINK) breaches a significant support level around $10, it could lead to a swift and bearish market reaction. Currently, LINK is still holding above this support area, but any decisive drop below could quickly alter the market sentiment towards negativity.

Key Takeaways

Chainlink (LINK) faces increased downside risk as it approaches a significant support area at $10.
The current weekly chart shows a head and shoulders pattern, typically indicative of a bearish trend.
If LINK falls below the $10 support, it could lead to a decline towards $4 to $5.
A more conservative price target is set at around $7.15, which may provide a temporary stop against further declines.
Currently, LINK is trading at $11.98, having experienced a minor daily gain but a weekly decline.

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Understanding the Head and Shoulders Pattern

In the insights shared by renowned crypto analyst CryptoBullet on X, LINK's weekly chart displays a classic head and shoulders pattern. This formation is generally interpreted as bearish in technical analysis. The head and shoulders pattern signals bearish momentum when there is a confirmed break beneath the neckline resistance.

The technical breakdown of Chainlink’s price action reveals that the left shoulder was formed during the early recovery phase of 2024, followed by the head, which peaked early in 2025. Subsequently, a lower peak marked the completion of the right shoulder in the latter part of 2025.

The most critical element to monitor is the neckline support, which has a slight upward slope and currently rests in the $10 to $11 area. This support zone has acted as a foundational support during various pullbacks, making it the key level to keep an eye on moving forward. As long as LINK remains above this level, the head and shoulders pattern remains unconfirmed.

Chainlink Price

ChainLink Price Chart. Source: @CryptoBullet1 on X

Potential Declines and Price Targets

The analyst warned that if LINK closes decisively below the neckline, this would activate the bearish outlook. In technical analysis, confirming a head and shoulders breakdown often leads to a measured move downward equal to the height of the pattern.

In Chainlink's case, this projection suggests that LINK could fall to a range of $4 to $5, marking approximately a 50% drop from current price levels. CryptoBullet indicated that this would be the lowest point LINK could potentially reach this year if strong selling pressures emerge, with such a scenario only plausible if the support fails quickly.

Additionally, the analysis identified an intermediate price level that might act as a buffer, preventing LINK from plummeting to $4. A more conservative downside target of around $7.15 is linked to the Point of Control on the Visible Volume Profile and aligns with the accumulation zone observed from 2022 to 2023.

As of the latest update, LINK is trading at $11.98, reflecting a 1.1% increase over the past 24 hours, but it has decreased by 5.4% over the week. A rebound from the neckline support could shift the market outlook towards a potential bounce.

Chainlink price chart from Tradingview.com LINK continues in tight range | Source: LINKUSDT on Tradingview.com