- Chainlink price seems to be developing a bearish pattern on its 4-hour chart.
- If validated, LINK could experience a trend reversal after the last bullish impulse.
- A spike in selling pressure might see this cryptocurrency drop to $29 or lower.
Chainlink price sits at a pivotal point in its trend as the technicals point to a massive correction on the horizon.
Chainlink price to suffer significant losses
Chainlink price seems to be forming a head-and-shoulders pattern on its 4-hour chart. But to complete the right shoulder of this bearish formation, LINK could first rise to $45 and then retrace to $29.
Breaking through the pattern’s neckline at $29 will confirm the bearish outlook and lead to a 44% decline. Indeed, slicing through this support level could see Chainlink price plummet to the 200-day moving average at $25.
If the selling pressure is significant enough, then LINK might dive further toward $16. This target is determined by measuring the distance from the pattern’s neckline to the head and adding that distance downward from the breakdown point.
LINK/USDt 1-day chart
Invalidation of the bearish outlook will come if Chainlink price manages to rise and stay above $45. Under such circumstances, LINK might retest the recent all-time high of $53.