Technical analysis of Chainlink’s price action shows the left shoulder formed during the early stages of the 2024 recovery, followed by a higher peak that marked the head in early 2025. This was then followed by another lower high that completed the right shoulder in the second half of 2025.
However, the most important zone to watch is the neckline support, which slopes slightly upward and is currently sitting in the $10 to $11 region. This support zone has acted as structural support during multiple pullbacks while the head and shoulders pattern was taking shape, making it the most important level to watch going forward. As long as the price holds above it, then the pattern is unconfirmed.
The analyst cautioned that a decisive weekly close below the neckline would activate the bearish setup. In technical analysis, a confirmed head and shoulders breakdown is known to open the path to a measured move equal to the height of the pattern.
Applied here, that projection places LINK’s downside target in the $4 to $5 range, which would represent just about a 50% decline from current price levels. CryptoBullet described this outcome as the lowest area LINK could reach this year if there’s strong selling pressure, and that such a move would only come into play if support fails very quickly.
Notably, the analysis also pointed to an intermediate level that could act as a stopping point that might stop LINK from crashing to $4. A more conservative downside target is around $7.15, which is connected with the Point of Control on the Volume Range Visible Profile and overlaps with the 2022 to 2023 accumulation zone that’s shown on the chart above.
