Will Chainlink Crash Below Its Long-Term Pattern? | Credit: Hameem Sarwar
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Key Takeaways
Chainlink (LINK) has created a massive head and shoulders pattern.
LINK risks breaking down from a 900-day diagonal support level.
Can Chainlink prevent a bounce, or is the price doomed for new lows?
Chainlink’s recent price action is flashing major warning signs that could lead to a breakdown.
A massive head and shoulders pattern has formed on the long-term chart, raising concerns that LINK is nearing a breakdown point.
With key technical indicators turning sharply bearish, the charts suggest that Chainlink’s bullish cycle has come to an end.
Let’s examine the charts to determine if this is the case.
Chainlink’s Bearish Pattern
The long-term Chainlink price action suggests that the entire upward movement this cycle has been contained within a massive, bearish head-and-shoulders pattern.
If this is accurate, the LINK price will break down from the pattern, confirming the start of the bear market.
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So far, the pattern’s diagonal neckline support has been in place for nearly 900 days, so a breakdown below it will confirm that the bull cycle has ended.
Additionally, the Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are extremely bearish.
The RSI is below 50, and the MACD is negative, both of which indicate a bearish long-term trend.
Afterward, the LINK price broke down from the support trend line and confirmed it as resistance, the final sign that the trend has shifted.
Momentum indicators support this bearish prediction. The RSI and MACD are both falling and in bearish territory, and neither has yet generated any bearish divergence.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
