Ethereum News Today: Chainlink (LINK) Faces 15% Drop Before Potential Breakout Amid Institutional Support

Chainlink (LINK) is currently retesting a key support zone amid a broader market pullback, with analysts suggesting that a further decline of around 15% could occur before a potential breakout. The token has recently fallen below the $25 support level, an area it had previously reclaimed, and is now trading near $23.52, down 8.5% on the weekly chart. This development has raised concerns among traders, who are monitoring whether this level will hold to maintain a bullish bias [1].

According to AltCryptoTalk, as long as LINK remains above the $23.5 threshold, the overall market bias remains positive, and trend-following long positions could be viable on every bearish correction within this range [1]. However, if the support breaks further, the price could drop toward the $20 level, representing a 15% decline from current levels.

Analyst Ali Martinez highlighted a four-year symmetrical triangle pattern on Chainlink’s chart, which, if broken out, could signal a 280% price increase. Although LINK has tested the upper boundary of this triangle twice since the Q4 2024 rally, it has yet to confirm a breakout. As a result, some market watchers anticipate a deeper pullback before another attempt at the $95–$100 price range [1].

Chainlink’s recent partnership with SBI Group, a major Japanese financial conglomerate managing $200 billion in assets, is viewed as a key fundamental development. The collaboration aims to utilize Chainlink’s services—such as Cross-Chain Interoperability Protocol (CCIP), SmartData (NAV), and Proof of Reserve—to enhance the efficiency and compliance of tokenized assets, including real estate and bonds [1]. This institutional engagement highlights growing confidence in decentralized oracle solutions and could provide a long-term floor for the token.

In addition, some analysts have drawn comparisons between Chainlink and Ethereum (ETH). Alex Clay noted that both cryptocurrencies have been consolidating within multi-year triangle formations, and if Chainlink can reclaim the pattern’s resistance, it may follow a similar trajectory to Ethereum, which recently broke out of its formation and reached a new all-time high [1].

While the immediate price outlook remains cautious, with a potential 15% pullback under discussion, the long-term fundamentals and institutional adoption remain strong. The market is now waiting for confirmation on whether the current consolidation will lead to a sustained breakout or a deeper correction [1].

Source: [1] Chainlink Ready For Massive Breakout? 15% Drop May ... https://www.newsbtc.com/news/chainlink-ready-for-massive-breakout-a-15-drop-may-come-first/