Chainlink (LINK) remained trapped in a consolidation pattern below $20 in early 2026, with on-chain data indicating prolonged losses for holders. Large investors were actively buying below $12, but technical analysis revealed a breakdown from critical support levels and the formation of a bearish head-and-shoulders pattern on daily charts.
The price of Chainlink (LINK) continued to compress beneath resistance after losing the $20 level, maintaining bearish pressure. On-chain metrics showed LINK spent extended periods at a loss, echoing prior market cycle peaks.
Since LINK fell below $14, large players aggressively bought every dip, with their focus shifting to $12. An analysis from Alphractal indicated these moves appeared opportunistic rather than a sign of strong fundamental conviction.
On the 4-hour chart, the Relative Strength Index (RSI) fell to 36.44, hovering near oversold territory. The price also lost the crucial 50% and 61% Fibonacci retracement levels between $12 and $13.
The daily timeframe revealed a clear bearish head-and-shoulders pattern forming. The neckline for this pattern was identified near $10.06, with a confirmed break potentially opening significant downside risk.
“The loss of these critical retracement levels suggested that LINK was too weak to mount a meaningful comeback anytime soon,” the analysis noted. Unless LINK can reclaim the $14 region decisively, sellers are likely to remain in control of the market momentum.
