LINK Plunges Deeply: Is a Price $5 Opportunity Emerging?

ChainLink (LINK) is currently in a difficult position on today’s price chart. Although some large accounts are actively buying at lower levels, the overall technical picture is sending signals that concern investors. With the current price at $9.05 and a 24-hour volatility increase of 0.09%, LINK has experienced significant failures at key technical levels and is now at risk of further decline.

Actual Data vs. Technical Expectations

To understand the full picture of LINK, one must look at its price history. From an all-time high of $52.70, the coin has undergone a substantial pullback. Conversely, the all-time low of $0.15 shows the project’s historical volatility range. Currently, at $9.05, LINK is in the mid-range, but technical trends clearly indicate the possibility of further decline.

On the 4-hour timeframe, two important Fibonacci retracement levels at 50% ($12.99–$13) and 61% ($12–$12.50) have been broken. This is not a minor signal—it indicates strong selling pressure in these zones. The support zone from $11.37 to $11.64 is also weakening, revealing lower lows.

Whales’ Actions: What Signals Are They Sending?

On the blockchain, large-volume entities (often called “whales”) have increased buying activity below $14, especially when LINK fell below $12. At first glance, this could be seen as a positive sign. However, caution is needed in interpretation.

These buy transactions may not represent long-term commitments from major investors. Instead, they could be short-term trading activities—aimed at capitalizing on short-term price volatility. Without clear upward momentum, these buying movements are simply attempts to exploit instability amid the prevailing downtrend.

Remaining Path: Support and Risks

K-line pattern analysis shows a Bearish Head and Shoulders formation on the daily chart. This is a warning sign of a potential reversal from bullish to bearish.

The key level is the neckline at $10.06—considered a critical support. If LINK cannot hold this level, the chances of a sharp fall to $4.91 and even near $5 increase significantly. A confirmed break below $10.06 will force holders into a difficult position.

Investment Decisions: Hold or Avoid?

From a technical perspective, the path of least resistance is downward. Unless LINK reclaims the $14 level with strong momentum, the overall outlook remains biased toward lower levels. Regaining the 61% Fibonacci zone ($12.50) could be seen as the first step toward testing a recovery.

Smart money traders are faced with a decision: should they follow positions aligned with the downtrend, or wait for clear signs of recovery before re-entering? According to expert analysis, short-term risks still dominate for LINK.

All analysis provided is for informational purposes only. Please conduct thorough research and manage risks carefully before making any significant investment decisions.