LINK Drops Ahead of Shark Pressure - Could the Crash Reach $5?

The LINK market is causing concern among many investors as large sharks continue to accumulate at low price levels. Chain data shows major liquidity providers quietly gathering around $12, a signal that does not always indicate the start of a long-term rally.

Since writing this article, LINK is currently trading at $8.84, up 5% in the past 24 hours. However, technical signals on higher timeframes still send notable warnings to interested parties.

Strong Shark Accumulation - But Is It a Positive Signal?

Sharks have been consistently appearing around the $14 zone in recent weeks, with particularly strong accumulation when the price hits $12. This has led many traders to be optimistic, viewing this as a sign of accumulation before an upward move. However, this behavior could also simply be large players picking up the fallen pieces from weaker investors before the market continues to panic.

On the H4 timeframe, key support levels have been broken. Specifically, LINK has fallen through the 50% Fibonacci level ($13) and the 61.8% Fibonacci level ($12.50), two levels that, according to theory, should be protected by Bulls. The collapse of these levels is not a positive sign at all.

RSI Stuck Around 36 - Entering Oversold Territory but No Reversal Signs

The RSI indicator on the H4 chart is currently hovering around 36, very close to oversold territory. However, despite being in oversold conditions, RSI has not shown a strong rebound. This is truly a worrying sign—it indicates that selling pressure still dominates even though the technical indicator is signaling a buy opportunity.

Head and Shoulders Pattern on D1 - The $10.06 Neckline Will Decide Everything

On the D1 timeframe, the picture becomes clearer—LINK is forming a clear Head and Shoulders (H&S) bearish pattern. This is one of the most reliable formations in technical analysis.

• Critical Neckline Level: Located around $10.06. Everything depends on whether LINK can hold this level. If the Neckline is broken, a significant drop could occur.

• Downside Target: If the Neckline is breached, theory suggests LINK could continue downward to test the $4.91 zone—a decline of over 40% from the current levels.

Do the Sharks Have Other Plans or Are They Just Clearing Out?

To break and invalidate this pattern, Bulls need to decisively break above $14. That’s not an easy task at the moment. If they fail to do so, sharks may just be accumulating at low levels in preparation for another drop, rather than gearing up for a rally.

This article is for informational and analytical purposes only. It is not investment advice. Please conduct your own research before making any trading decisions.