Chainlink’s Great Tumble: Will It Go Splat at $4 or Bounce Like a Bertie Wooster?

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Well, I say, old bean, it appears that our dear friend Chainlink is teetering on the edge of a precipice, rather like a chap who’s had one too many at the Drones Club and is now attempting to navigate the staircase. According to some fellow who fancies himself a crypto analyst (let’s call him CryptoBullet, shall we?), LINK is approaching what he calls a “technically sensitive area.” Sensitive, indeed-rather like Aunt Agatha’s feelings about my latest engagement.

This chap CryptoBullet, who presumably spends his days squinting at charts instead of enjoying a spot of golf, has flagged a growing downside risk on the higher timeframes. He notes that LINK’s current weekly structure is as vulnerable as a newt in a room full of toads if the support zone around $10 gives way. For now, the price is holding above that area, but one decisive move below it, and we’re in for a bearish mood faster than Jeeves can mix a martini.

A Head and Shoulders Formation? Good Heavens, It’s Not a Fashion Show!

CryptoBullet, our intrepid analyst, points out that LINK’s weekly chart has carved out what he calls a “head and shoulders formation.” Now, I’m no expert, but I’m fairly certain this isn’t a reference to the latest trend in gentlemen’s tailoring. According to the rules of technical analysis (whatever those may be), this pattern is bearish. It resolves bearishly when there’s a confirmed break below the neckline resistance. Sounds like a jolly unpleasant business, rather like being caught in a compromising position by Aunt Dahlia.

The left shoulder, it seems, formed during the early stages of the 2024 recovery, followed by a higher peak that marked the head in early 2025. Then came another lower high, completing the right shoulder in the second half of 2025. The most crucial zone to watch, however, is the neckline support, currently lounging in the $10 to $11 region. This support zone has been as reliable as Jeeves in a crisis, acting as structural support during multiple pullbacks. But if it fails, well, it’s anyone’s guess where LINK will end up.

Losing Support? More Like Losing One’s Trousers at a Society Ball

CryptoBullet cautions that a decisive weekly close below the neckline would activate the bearish setup. In technical analysis parlance, a confirmed head and shoulders breakdown opens the path to a measured move equal to the height of the pattern. Applied here, that places LINK’s downside target in the $4 to $5 range-a whopping 50% decline from current levels. Good grief, that’s enough to make even Bertie Wooster break into a cold sweat.

Our analyst describes this outcome as the lowest area LINK could reach this year if there’s strong selling pressure. However, he does offer a more conservative downside target of around $7.15, connected with the Point of Control on the Volume Range Visible Profile and overlapping with the 2022 to 2023 accumulation zone. It’s all rather technical, but I suppose it’s better than ending up in the soup entirely.

At the time of writing, LINK is trading at $11.98, up by 1.1% in the past 24 hours but down by 5.4% in a seven-day timeframe. A rebound from the neckline area would shift the short-term outlook to a relief bounce, rather like the feeling one gets after Jeeves has sorted out one’s latest scrape.

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2026-01-28 02:10