Chainlink is approaching a technically sensitive area with a growing downside risk on higher time frames highlighted by a crypto analyst. Based on a recent technical analysis of X, the analyst noted that LINK’s current weekly structure leaves the market vulnerable if a key support zone around $10 breaks down.
The price action is still there remain above that area for the time being, but the chart shows that a decisive move below could quickly turn the outlook into a bearish mood.
Head and shoulders training on a weekly time frame
According to a popular crypto analyst known as CryptoBullet on X, LINK’s weekly chart has a cut out standard head and shoulders formation. Based on the rules of technical analysis, the Head and Shoulders (H&S) pattern is bearish. The pattern resolves bearish if so a confirmed break below the neckline resistance.
Related reading
Technical analysis of Chainlink’s price action shows that the left shoulder formed during the early stages of the 2024 recovery, followed by a higher peak that emerged in early 2025. This was then followed by another lower high that completed the right shoulder in the second half of 2025.
The most important area to watch out for, however, is the neckline support, which is sloping slightly upward and currently sits in the $10 to $11 region. This support zone has acted as structural support during multiple pullbacks as the head and shoulders pattern took shape, making it the most important level to watch going forward. As long as the price remains above it, the pattern is unconfirmed.
ChainLink price chart. Source: @CryptoBullet1 on X
Losing support level and price targets
The analyst warned that a decisive weekly close below the neckline would activate the bearish setup. The technical analysis shows that a confirmed head and shoulders breakdown opens the way to a measured move equal to the height of the pattern.
Applied here, this projection places LINK’s downside target in the $4 to $5 range, which would represent a decline of approximately 50% from the current price level. CryptoBullet described this outcome as the lowest area LINK could reach this year if there is strong selling pressure, and that such a move would only come into play if support fails very quickly.
Related reading
Interestingly, the analysis also pointed to an intermediate level that could act as a stop point that could prevent LINK from crashing to $4. A more conservative downside target is around $7.15, which relates to the Point of Control on the Volume Range Visible Profile and overlaps with the 2022 to 2023 accumulation zone shown in the chart above.
At the time of writing, LINK is trading at $11.98, up 1.1% in the past 24 hours, but down 5.4% in the span of seven days. A recovery from the neckline region would change the short term prospect of relief.
Featured image created with Dall.E, chart from Tradingview.com