Analyst Warns LINK Could Slide Toward $7.15 if Key Weekly Support Breaks This Year

Key Insights:

• LINK faces a critical $10-11 support, breaking it may lead to a drop to $7.15.
• Analysts spot a potential Head & Shoulders pattern signaling a possible decline toward $4-5.
• The $11.8–$12.2 support range could lead to a recovery, with $14.9 as a possible resistance target.

Chainlink’s price is at a crucial level. Analysts are closely monitoring the $10-11 support range for LINK. A failure to hold this zone could lead to significant downside risk. If this support breaks, Chainlink could see a sharp drop, with some predicting a potential price of $7.15.

Head & Shoulders Pattern Indicates Possible Decline

Several analysts are pointing to a potential Head & Shoulders pattern on the LINK 1-week chart. This pattern is often seen as a bearish signal, and if Chainlink loses its support at $10-11, it could head toward the $4-5 range, according to some experts.

CryptoBullett remarked, “IF $LINK loses the Support/Neckline ($10-11), it will be so bad.” 

He added that this scenario could lead to a target price of $4-5, the lowest possible level for Chainlink this year. While this prediction is concerning, it is important to note that markets can change quickly, and these targets are not guaranteed.

As of the time of writing, Chainlink’s price was trading at $11.92 with a 24-hour trading volume of $395,805,367. Chainlink is up 3.94% in the last 24 hours.

Support Zone at $11.8–$12.2 Holds Key for Bullish Trend

Chainlink’s price is currently testing a key support zone between $11.8 and $12.2. This range has shown strength in the past and may provide some stability. If LINK holds above this support, there is potential for a recovery toward higher resistance levels, with some analysts expecting it to reach $14.9.

According to on-chain data from Santiment, LINK is currently undervalued. The 30-day Market-Value-to-Realized-Value (MVRV) ratio is recorded at -9.5%. This indicates that Chainlink may be nearing a period of price stabilization. CoinGlass also pointend that open interest has decreased by 2.19%, suggesting a reduction in market risk.

With recent improvements in trading volume, the next few days could be crucial for determining whether LINK will break support or rebound toward higher levels.