⭐️ Chainlink Price Rare Pattern Points To A 35% Crash

Explore why the Chainlink price could fall by as much as 35% after forming a death cross and a head and shoulders pattern on the 4H chart

Chainlink price has nosedived this month, and a rare chart pattern points to more downside as we enter into 2025. Despite its strong fundamentals, LINK has crashed by 35% from its December highs, mirroring the performance of Bitcoin and other altcoins.

🔸 #Chainlink Price Analysis: H&S Points To More Downside

The 4H chart shows that the LINK price rallied and peaked at $31 in December as Bitcoin and other altcoins rallied. It has formed a head-and-shoulders chart pattern and is now hovering at its neckline.

An H&S pattern is a popular reversal sign that comprises a head, two shoulders, and a neckline. In this case, the head was at $31, while the two shoulders were around the 23.6% Fibonacci Retracement level at $26.10. This pattern’s neckline is at the 50% retracement point and the weak, stop & reverse of the Murrey Math Lines.

Chainlink price also formed a death cross on December 22 as the 200-period and 50-period Weighted Moving Averages (WMA) flipped each other. Also, the Percentage Price Oscillator (PPO), which is a modified type of the MACD indicator, has moved below the zero line and is pointing downwards.

Therefore, these patterns point to a big drop in the next few days. The distance between the head and the neck is about 35%, while a similar distance from the neckline points to a #LINK price crash to $13.25.

Conversely, a move above the major S&R pivot point at $25, which is along the right shoulder, will invalidate the LINK price forecast. Such a move will validate the slow formation of a falling wedge pattern between December 24. A wedge is a popular bullish reversal pattern.

Chainlink price retreat has coincided with the ongoing retreat of other DeFi tokens like AAVE, Uniswap, and Compound.