Chainlink is testing its neckline support at $12.80–$13.00, where breakdown risks align with a fully formed head-and-shoulders top.
With $LINK stuck below key moving averages and the Ichimoku cloud, sellers continue defending resistance near $13.60–$17.50.
A close below $12.80 could trigger a fast move to $11.20, matching the February base and confirming bearish trend continuation.
Chainlink (LINK) is showing notable signs of weakness after failing to hold mid-range support levels. Price structure is compressing near critical neckline territory, setting up a potential breakdown or bounce.
Tracking Price Movement Near Support Zone
LINK price action is hovering tightly around a multi-month neckline support between $12.80 and $13.00. This area is technically significant as both a horizontal support and the base of a head-and-shoulders pattern. If confirmed, the structure points to intensifying bearish pressure and downside continuation in the short term.
Assessing the current structure, LINK on the daily chart outlines a clear descending channel that has been intact since early March. LINK prices have followed a repetitive path of lower highs and lower lows, with rejection levels emerging near $18.50, $19.40, and again in late May 2025. The lower channel edge near $13.50 has so far acted as dynamic support, although the price has failed to make a higher high since the May peak at $18.70.
Source: Market Spotter on (X)
As LINK price consolidates at the neckline, the head-and-shoulders formation now appears fully developed. The left shoulder was carved out in April near $13.90, followed by a sharp breakout that pushed LINK to a high of $18.70 by May 20. A pullback then retraced to $13.00 before forming the right shoulder in early June around $15.90. This sequence completes the pattern’s anatomy, with all three pivot zones backed by strong volume surges, especially during the head's formation.
LINK is now trading at about $13.07, below both its 9-day EMA of $13.77 and its 50-day SMA of $14.94. The decreasing slope of both indicators confirms the deterioration of the trend. More critically, Bollinger Bands are tightening, implying that LINK price compression may soon give way to directional volatility. If sellers break below $12.80 with a decisive close, it opens a projected move toward $11.20, which aligns with earlier consolidation from February.
Risk Builds Beneath Key Resistance Clusters
Beyond pattern symmetry, multiple resistance layers are stacking up. LINK faces opposition from the Ichimoku cloud, now thickening between $13.60 and $17.50. The market continues to reject any breakout above this cloud layer.
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This confluence raises a broader question: can LINK break free from this descending grip, or does downside continuation dominate? Volume today remains elevated, a sign of active participation near decision zones. Moreover, failure to reclaim the short-term moving averages indicates bulls lack the strength to flip trend bias convincingly.
Despite several bounce attempts from lower support, sentiment surrounding LINK remains cautious. LINK price is not printing any higher highs, and current positioning at the neckline support keeps bears in control unless invalidated with strong volume. The coming sessions will prove critical in resolving this high-stakes formation.
