- Chainlink (LINK) has dropped over 37% this year amid a historically bearish crypto market where Ethereum suffered its worst decline since 2018 with a 45% drop.
- LINK is currently testing crucial neckline support between $9.50-$12.50, potentially forming a Head and Shoulders pattern that could spark a reversal if the right shoulder completes.
- The pattern suggests potential for an 80% upside rally targeting the $22.83 zone, following a previous 200% surge that formed the pattern's head in late 2024.
- MACD indicators show early signs of stabilization with shrinking histogram bars, while a move above the 100-week moving average would confirm an upside rally.
Date: Thu, April 17, 2025 | 09:10 AM GMT
The cryptocurrency market has experienced a historically bearish first quarter, with Ethereum (ETH) suffering its worst decline since 2018, dropping a staggering 45%. This widespread downturn has significantly impacted altcoins, including Chainlink (LINK), which has shed more than 37% of its value this year.
Now, LINK is testing a key support zone where a potential rebound could be brewing.
Could This Pattern Spark a Reversal?
On the weekly chart, LINK is currently hovering around a major neckline support area between $9.50–$12.50 — a zone that has previously acted as a strong launchpad for massive rebounds. What’s grabbing attention is the possible development of a Head and Shoulders pattern. Normally, this is considered a bearish setup, but interestingly, LINK still has a real shot at flipping the script if a reversal forms from here, completing the right shoulder.
This pattern began taking shape after LINK faced a sharp rejection from its March 2024 high of $22.83. The subsequent drop led to the formation of the left shoulder. Then came a powerful rally in late 2024 — surging over 200% — to mark the head of the structure. Fast forward to now, and the current 67% correction has dragged LINK back to the neckline support once again.
If LINK truly follows through with this Head and Shoulders idea, we could be looking at a strong bounce from current levels — potentially aiming for the $22.83 zone once again. That’s about an 80% upside from where LINK trades today. After reaching that zone, the pattern suggests there could be another pullback toward the neckline, possibly leading to a breakdown if the bearish pattern completes.
The MACD () is also showing early signs of potential stabilization. Although it’s still in negative territory, the histogram bars are starting to shrink, suggesting that bearish momentum might be fading.
What’s Ahead?
All eyes are now on how LINK behaves around this critical support zone. A strong bounce from here could set the stage for an epic rally, giving bulls a much-needed boost.
One key level to watch closely is the 100-week moving average (100 W MA) — a move above this trendline could add strong confirmation that an upside rally is truly underway.
At the same time, traders and investors should monitor the MACD action, general market sentiment, and key resistance levels to catch the next big move if it happens.
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