Chainlink at a Crossroads: Analysts Warn of Potential 15% Dip Before Monumental Breakout Chainlink (LINK) finds itself at a pivotal juncture, retesting a critical support zone amidst a broader market pullback. While the long-term outlook remains overwhelmingly bullish for many, some analysts are cautioning investors about a potential 15% price drop that could precede a massive upward trajectory, mirroring recent surges seen in other major altcoins.
Navigating Critical Support
Following a general market downturn, Chainlink recently experienced a 10% dip, falling to its local range lows and losing the crucial $25 support level it had recently reclaimed. After briefly touching an eight-month high of $27.87 last Friday, LINK retraced to the $23.50 area. Despite this recent decline, crypto market observers like AltCryptoTalk suggest that LINK continues to trade within a rising channel established over the past two weeks. The prevailing sentiment indicates that as long as Chainlink maintains its position above the $23.50 lower boundary of this support zone, the overall bias remains bullish, signaling opportunities for trend-following long setups during bearish corrections. This resilience is further underpinned by strong fundamentals, including a strategic partnership with Japan's SBI Group, which aims to leverage Chainlink's services for tokenized funds, real-world assets, and regulated stablecoins.
Pre-Breakout Dip or Major Rally?
Prominent analyst Ali Martinez has reinforced the expectation that Chainlink will test a key support level before an eventual massive breakout. Martinez points to a four-year symmetrical triangle formation on LINK's chart, which, once decisively broken, could unleash an impressive 280% price increase. LINK has twice attempted to breach this pattern's upper boundary since the Q4 2024 rally, with a brief breakout last week failing to confirm. This suggests that Chainlink might undergo one more significant dip, potentially targeting the $20 area – a 15% decline from its current levels – before setting its sights on the ambitious $95-$100 range. Analyst Rekt Capital previously emphasized the importance of sustained stability above the $23.86 level, highlighting that a monthly close above this point is crucial for LINK's rally. Failure to secure this monthly close could trigger a deeper pullback towards the $19.41 mark, a level not observed since an early August breakout. This price action draws parallels to Ethereum (ETH), which recently confirmed a similar multi-year triangle breakout, establishing its former resistance as new support before hitting a new all-time high. As of writing, LINK is trading at $23.52, reflecting an 8.5% weekly drop.
