Chainlink’s Chart Looks Ready to Fall Off a Cliff

Chainlink (LINK) may be entering one of its most critical phases of the year. After losing a long-standing support level that has guided its upward channel since mid-2023, LINK is now drifting back toward the exact zone where the breakdown occurred.

Analysts often see this type of move as a classic retest and an opportunity for the market to confirm whether former support has truly flipped into resistance. And now, the structure is unfolding with unusual clarity, per an analysis shared by popular cryptocurrency trading expert Ali Martinez on December 1.

Specifically, LINK recently rejected its mid-channel region around $15, falling sharply toward the lower trend boundary. The breakdown point sits just above the $13 range, and price action is now hovering beneath it, testing whether buyers still have the strength to reclaim the level.

So far, the reaction appears muted, and sellers remain in control.

The broader structure suggests a slow, grinding shift in momentum rather than a fast capitulation. After months of stair-step rallies that pushed LINK toward $22 and beyond, the market has entered the kind of exhaustion phase that often precedes deeper resets.

With volatility compressing and lower highs forming across multiple timeframes, the retest becomes a pivotal moment: either bulls reclaim the trend, or the breakdown validates and extends into the next major support.

Deeper Retracement Already In Motion?

Below current levels, the chart shows a natural progression of Fibonacci supports that align with prior consolidation bands. The $12.30 area marks a midpoint, but the more decisive cluster sits between $9.50 and $10, a zone where LINK built months of support during its long consolidation in 2024.

Should price fail to recover the breakdown, the structure points toward an eventual sweep of that region.

Martinez’s projection outlines an even more sobering possibility. If LINK loses the $10 band, the chart opens the door to a retreat toward $8, an area that aligns with a 0.236 Fibonacci retracement and a historical resting point during major resets in the asset’s cycle.

This doesn’t suggest fundamental weakness in Chainlink’s network or adoption, but rather a technical unwind following a prolonged period of overextension.

At the moment, LINK is trading at $12.16, down 6.99% on the day, losing 2.3% across the past week, and accumulating a dip of 29.77% on its monthly chart, according to the most recent information.

For now, traders will be watching how this crypto asset behaves during the retest. Reclaiming $13 would signal recovery attempts. But continued rejection may confirm the next leg down, setting up a more cautious December for Chainlink holders.

More Must-Reads:

• Trader Profits $1M in an Hour Shorting ETH
• $210 Billion Crypto Crash Fuels New Manipulation Allegations
• Cardano Flashes Major Buy Signal After Heavy Selling