Chainlink LINK Faces Critical Test as Bearish Pattern Points to $7.15 Target

Chainlink's LINK token is under significant selling pressure, currently trading at $11.84 with a 1.84% decline over the past 24 hours. Despite a massive 153.97% surge in trading volume to $494.67 million, price action remains muted, signaling heightened volatility and potential distribution by larger holders.

Weekly performance shows a 6.94% drop, with the seven-day average hovering NEAR $11.86. Technical analysts are pointing to a concerning bearish head-and-shoulders pattern forming on LINK's weekly chart, suggesting a potential major trend reversal. The critical neckline between $10 and $11 represents a key support zone; a confirmed breakdown below this level could target $7.15, which served as a major consolidation area throughout 2022-2023.

CryptoBullet, a noted market analyst, warns that weakening buyer momentum and failed rebound attempts indicate further downside risk. In an aggressive bearish scenario, the pattern's measured move could potentially push LINK toward the $4-$5 range, though this WOULD require significant market deterioration.