Chainlink (LINK) Update: Bears Target $8 as Market Pressure Increases
Chainlink (LINK) has decreased 7% to $12, and analysts are cautioning about potential further losses without reclaiming key resistance levels.
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, marking the 0.618 Fibonacci retracement zone, often used to gauge trend strength. Following this break, the price action has become increasingly bearish. LINK is now hovering below the former ascending channel that guided its trend from mid-2023.
Analyst Ali Martinez notes that LINK may be “retesting the breakdown zone before a move toward $8.” He pointed out that prior support is now serving as resistance. Unless LINK reclaims the $14–$15 area, the downside risk persists, with next key levels around $10 and $8 aligning with historical reactions on the chart.
“Chainlink $LINK could be retesting the breakdown zone before a move toward $8.” — Ali (@ali_charts) source
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, reflecting selling interest at higher levels with no sustained buying follow-through.
Support Zone in Focus
LINK is now approaching a critical support zone that has previously shown resilience. Traders are monitoring for any reaction; a stabilization here could lead to a short-term bounce. Conversely, a breakdown below this range could activate further downward target scenarios.
Market Sentiment and Developments
Although technical indicators lean bearish, some analysts maintain a long-term optimistic outlook. Javon Marks pointed out that LINK’s long-term target is significantly high at around $47, despite the current bearish sentiment. Furthermore, reports indicate that Grayscale is moving to convert its private LINK trust into a spot ETF.
Conclusion
While Chainlink’s (LINK) near-term prospects appear challenging, ongoing developments and analysis suggest that traders should remain alert to potential reversals and market movements ahead.
