Chainlink (LINK) Breakdown: Bears Aim for $8 as Pressure Mounts

Chainlink (LINK) is trading lower this week as sellers regain control. The price has slipped to around $12 at press time, following a 7% drop in the past 24 hours.

Meanwhile, the focus now turns to whether it can stabilize or if the path lower toward $8 is now open.

Breakdown Signals Weakness in Structure

LINK lost support at the $15 level recently. That level marked the 0.618 Fibonacci retracement zone, often used to gauge trend strength. Since breaking below it, the price action has turned more bearish. LINK is now hovering below the former ascending channel that guided its trend from mid-2023.

According to analyst Ali Martinez, LINK may be “retesting the breakdown zone before a move toward $8.” He pointed to prior support now acting as resistance. Unless the price reclaims the $14–$15 area, downside risk remains. The next key levels are around $10 and $8, in line with historical reactions on the chart.

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In addition, on the short-term chart, LINK was rejected at descending trendline resistance. The failed breakout led to a sharp drop, confirmed by increased volume. The move reflects selling interest at higher levels, with no sustained buying follow-through.

Alpha Crypto Signal noted,

“$LINK failed to flip its trendline resistance… sellers are still in control of the trend.”

Notably, technical indicators also reflect this. The 50-period EMA and 200-period SMA are both trending downward and remain above the current price, signaling that the broader structure has not yet shifted in favor of buyers.

Support Zone in Focus

LINK is now nearing a key support zone. This area has seen previous bounces, and traders are watching for any reaction. If it stabilizes here, a short-term bounce may follow. Otherwise, a break below this range could open the door to lower targets.

CryptoWZRD shared that both LINK and LINKBTC are showing weak structure on daily and weekly timeframes:

“A bullish reversal is needed to see a rally towards the $16 resistance.”

The analyst also marked $13.50 as a level that needs to break for a more confident upside setup.

Market Sentiment and Developments

While technicals lean bearish, some analysts continue to point to long-term potential. Javon Marks mentioned that LINK’s target remains over 240% away at around $47. At the same time, ETF analyst Nate Geraci reported that Grayscale is set to convert its private LINK trust into a spot ETF.

Data from analyst Ali Martinez showed that large wallets offloaded or redistributed over 31 million LINK in recent weeks. Despite this, Chainlink has continued to rank among the most active projects in terms of development, as we recently reported.

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