Top Analyst Warns Chainlink (LINK) Could Drop Again: How Low Might It Go?

Recent price action around Chainlink has started to raise fresh concerns after the token struggled to hold above key resistance levels near $10. That hesitation has drawn attention to a broader structure that suggests the market may not be ready for a sustained move higher just yet.

A closer look at the LINK chart shows that price has been trading inside a higher timeframe imbalance zone. That zone often acts as a premium area where sellers begin to take control. The reaction from this region has already shown rejection, and that detail matters for what could come next.

Chainlink Price Structure Shows Signs Of Distribution After Recent Rally

The recent move upward now looks less like a breakout and more like a distribution phase. Crypto Patel points to a classic accumulation, manipulation, and distribution sequence, where price first builds a base, moves higher to attract liquidity, and then reverses once enough positions get trapped.

Crypto Patel explains that liquidity appears to have been engineered above recent highs. That move usually creates a setup where the market hunts stop orders before shifting direction. The rejection from the premium zone adds weight to this idea, as it suggests sellers stepped in at a level where price was considered overvalued.

Another detail from Crypto Patel’s analysis focuses on the fair value gap visible on the weekly timeframe. That inefficiency often acts as a magnet for price, and once filled, the market tends to reverse direction. LINK appears to be reacting exactly within that region.

Downside Targets Around $7.20 And $6.15 Now Come Into Focus

The current structure leaves clear downside targets that traders are watching closely. Crypto Patel highlights $7.20 as the first key level. A move toward that zone would represent a deeper correction but still remain within a broader range.

A break below that level could open the door toward $6.15, which sits closer to external liquidity zones. Those areas often attract price during bearish phases because they contain unfilled orders and stop losses.

Crypto Patel emphasizes that the directional bias remains bearish unless the structure changes. That means traders looking for confirmation may wait for a clean rejection signal before expecting further downside.

Read Also: VanEck Makes a Shocking Ethereum (ETH) Price Prediction for 2030

Every bearish setup comes with a point where the idea no longer holds. Crypto Patel identifies a daily close above $11.47 as the invalidation level. A move above that price would suggest that buyers have regained control and that the current structure may no longer apply.

That level now acts as a key line in the sand. As long as LINK stays below it, the probability of a move toward lower targets remains in play.

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