A Look Back at LINK from $12 to $9: Are Whales Setting a Trap?

After breaking through the $12 level in recent sessions, LINK is currently trading at $8.96 – a price point that many technical analysts had warned about earlier. Nevertheless, signals from whales (large investors) continue to appear, creating an interesting clash between the smart money’s perspective and the broken technical structure. Current data shows LINK has lost all levels from $14 downward, and now all eyes are on whether $4.91 is the final stop or just a temporary pause.

Large Investors Still Quietly Accumulating Below $12

The clearest sign from whales is their continuous buying each time the price drops below $14, especially in the sub-$12 region. However, this action may not reflect long-term confidence in the price outlook – it could simply be a short-term scalping strategy to profit from volatility. The bigger question is: without clear momentum from these big players, is the accumulation below $12 just a series of quick trades while the main trend continues to decline? Current data is too preliminary to answer definitively, but LINK dropping to $8.96 makes it obvious.

The Head and Shoulders Pattern Is Now a Reality

On the 4-hour to daily timeframes, LINK has failed to hold two key Fibonacci retracement levels: 50% at $12.99–$13 and 61% at $12–$12.50. Failure at these support zones is not only a technical signal but also indicates that selling pressure overwhelmingly dominates buying. Moreover, another support zone at $11.37–$11.64 is gradually becoming irrelevant and no longer providing protection.

Most notably, a clear Bearish Head and Shoulders pattern has formed and is nearly complete on the daily chart. While this pattern doesn’t always lead to catastrophic crashes, in LINK’s case, combined with the collapse of Fibonacci levels, it serves as a significant warning.

The $10.06 Neckline Has Been Broken

The neckline of the Head and Shoulders pattern is at $10.06 – a level that has almost certainly been broken. With the current price at $8.96, this confirms a negative technical signal. Once such patterns are triggered, the next target for further decline is typically the height of the pattern – in this case, pointing toward a move down to $4.91. This isn’t an overreach – it’s purely a technical calculation.

Conflicting Signals: Whales vs. Charts

The current situation of LINK reflects a conflict between two forces: on one side, whales are still accumulating below $12, indicating confidence in a potential upward move. On the other side, the technical chart tells a different story – one of structural collapse, loss of key levels, and a high probability of a target move down to $4.91.

Unless LINK can reclaim and hold above $14, the path of least resistance is downward. Once $10.06 is fully broken (which seems to have happened), a drop to $5 is no longer an unlikely scenario.

The Last Hope of the Bullish Force

For investors still wanting to hold their LINK positions and hope for a recovery, the first and only step is to reclaim the 61% Fibonacci level at $12.50. This would signal that smart money (whales) are not just seeking personal profit but are actually providing support to sustain LINK’s vitality. Currently, with the price at $8.96 and large funds remaining “silent,” this opportunity is quite fragile.

The final question for you to answer: Will you choose to monitor and possibly join the smart money if they reactivate buy signals, or will you look for a shorting opportunity at the Head and Shoulders neckline and wait for the target of $4.91?

Analysis information from Trading Insight is for reference only and not investment advice. Please conduct your own thorough research before making any investment decisions.