Chainlink has seen around a 25% dip since mid-May and things could be about to get worse as price nears a key support level. LINK price is currently trading around $14, but the chart suggests that a further drop is possible if the current trend does not hold.
According to an analysis by Ali (@ali_charts), Chainlink is approaching the lower boundary of a parallel ascending channel. This support lies close to $12.30, and it has historically served as a strong bounce point for LINK price. However, if this level fails to hold this time, the consequences could be severe.
LINK Price Risks Crashing to $8
Ali points out that if LINK breaks below the $12.30 support zone, the next possible destination could be $8. Looking at the chart, the price is clearly moving within a large upward channel, with repeated touches at both the upper and lower boundaries. This structure outlines potential zones of resistance and support.
Right now, LINK is hovering just above that critical $12.30 support line. If sellers push the price below this line, it would signal a break of structure and a likely acceleration downward toward the next horizontal Fibonacci level around $8. This would mark a roughly 43% drop from the current price of $14.
The Fibonacci levels on the chart also show this $8 zone aligning with the 0.236 retracement, adding more technical weight to this target.
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Chainlink Price Must Hold the Line
Chainlink price action remains in a tight spot. A bounce here could return it to higher levels in the channel, potentially back toward $17 or more. But a failure to hold $12.30 opens the door for aggressive downside.
In summary, traders watching LINK should pay close attention to the $12.30 mark. Holding that line could protect Chainlink price from steep losses. Losing it, however, could drag the LINK price down by more than 40%.
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