Chainlink is creating a bearish engulfing candlestick.
Will LINK break down, and if yes, how much will it plunge?
On August 28, U.S. Commerce Secretary Howard Lutnick revealed that the Department of Commerce will start publishing official U.S. economic data directly on the blockchain.
To make this move possible, the agency is partnering with Chainlink (LINK) and Pyth Network (PYTH), two of the top decentralized oracle providers.
Despite the positive news today, the price of Chainlink is currently creating a bearish engulfing candlestick. If it confirms this with a breakdown, LINK could fall another 15%.
Let’s examine the charts and see how likely that is.
Chainlink Price Analysis
The LINK price has more than doubled since bottoming at $10.10 in April 2025.
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
Technical signals reinforce the bearish outlook: The Relative Strength Index (RSI) flashed a bearish divergence (orange) ahead of the decline, while the Moving Average Convergence/Divergence (MACD) produced a bearish cross (black circle) shortly after.
If the retracement deepens, price action points toward key support levels: $21.40 at Fibonacci support and $19.40, where Fibonacci and horizontal levels converge.
Why is Chainlink Going Down?
Chainlink’s wave count confirms the bearish hypothesis.
According to the count, LINK completed a five-wave upward movement (green), which evolved into an ending diagonal.
The breakdown from the channel is likely an A-B-C structure.
If so, Chainlink’s price is now in wave C, confirmed with today’s bearish engulfing candlestick.
There are two target ranges for the bottom: The $21.10-$21.40 area will give wave C the same length as wave A and will touch the 0.382 Fibonacci retracement support level.
If wave C extends to 1.61 times the length of wave A, the LINK price will reach the $17.40-$18.10 area.
Afterward, the previous bullish trend could resume.
Bearish Chainlink Trend
Chainlink’s recent rally is showing signs of exhaustion, with the bearish wave count pointing to a pullback.
If LINK confirms the bearish engulfing candlestick, the next key supports lie around $21.40 and $19.40, with a deeper extension targeting $17.40–$18.10.
While this correction could be sharp, it may ultimately reset momentum for a continuation of the broader bullish trend.
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.
