Crypto Analyst Predicts Chainlink Price Drop To $7.50 After Breaking A Rising Trendline

Crypto analyst Ali Martinez has raised concerns about Chainlink’s (LINK) price trajectory, forecasting a significant decline after the token broke below a key rising trendline. 

Martinez shared his analysis via X, highlighting $10 and $7.50 as the next critical support zones. LINK, which has been fluctuating between $9 and $12, is now struggling to maintain momentum beneath the trendline. 

According to Martinez, if current bearish pressure continues unchecked, the token could potentially plunge to as low as $7.

The analysis predicts a substantial drop that could shake investor sentiment and test long-term support structures.

LINK Price Drops Amid Broader Market Weakness

At present, Chainlink is trading at $11.15, marking a 4.16% decline over the past 24 hours and a sharp 17.04% drop over the last seven days. 

With a circulating supply of 640 million LINK, the project holds a market cap of approximately $7.1 billion. 

The declining price trend reflects broader weakness in the cryptocurrency market, which has been facing immense selling pressure. 

Investors appear to be retreating as market confidence wanes, and LINK’s inability to stay above its trendline could suggest further downside in the near term unless a strong support rebound is observed.

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Broader Market Sentiment Adds to Bearish Momentum

The bearish outlook on Chainlink isn’t occurring in isolation, it coincides with a broader selloff across the entire crypto sector. 

On what analysts are dubbing “Black Monday,” Bitcoin tumbled below the $75,000 mark, triggering a wave of panic selling. 

Ethereum followed suit with a 19% drop, adding to fears that the market could be entering a prolonged bear phase. 

Contributing to the turmoil are geopolitical tensions, trade tariff escalations, and concerns about the increasing centralization of crypto by institutional players. 

These macroeconomic and structural headwinds are undermining crypto’s image as a decentralized safe haven, thereby impacting even strong projects like Chainlink.

Technical Indicators Offer Mixed Signals Amid Market Uncertainty

Despite the negative sentiment, there are a few technical indicators offering glimmers of hope for Chainlink. 

The token’s open interest saw a modest uptick of +0.08% over the past 24 hours, reaching $198.4 million. 

Additionally, the Relative Strength Index (RSI) has just broken above the 50 level, an area often interpreted as a neutral zone between bullish and bearish momentum. 

However, analysts caution that this is not yet a definitive signal of reversal. The RSI’s position suggests that LINK is in a pivotal range, where increased buying volume could support a rebound.

However, the ongoing weakness in market sentiment could just as easily lead to another leg down. Investors and traders are advised to keep a close watch on these levels in the coming days.

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