Chainlink Price Flash Crashes as Risky Technical Patterns Emerge

Source: CryptoNewsNet Original Title: Chainlink price flash crashes as a risky pattern slowly emerges Original Link: Chainlink (LINK) token has retreated to a low of $12.8, down by nearly 12% from its highest point this month, and by 55% from its 2025 highs. The decline coincided with the performance of Bitcoin and other tokens, alongside weakness in European stock markets and US futures. This retreat was largely driven by macroeconomic factors affecting the broader market.

Market Dynamics

Chainlink’s decline was accompanied by significant liquidations in the derivatives market. Open interest in the crypto industry dropped by 2.6% in the last 24 hours to $138 million, while liquidations surged by 770% to $873 million. LINK’s open interest fell to $620 million from the year-to-date high of $708 million, with bullish positions worth over $3.3 million liquidated during this period.

Demand for LINK ETFs has remained relatively weak since their approval in December. Grayscale’s GLNK ETF has accumulated over $87 million in assets with $64 million in cumulative inflows, while a competing ETF launched last week has accumulated nearly $2.6 million in assets.

Positive Fundamentals

On the positive side, Chainlink maintains some of the strongest fundamentals in the crypto industry. It has become the largest oracle network with over $60 billion in total value secured. The protocol has emerged as a major player in the real-world asset tokenization sector, with its Cross-Chain Interoperability Protocol widely adopted by major companies and institutions globally. Additionally, the Strategic LINK Reserve continues accumulating tokens and currently holds reserves worth over $20 million.

Technical Analysis

The daily chart reveals concerning technical patterns. LINK has crashed from a high of $27.78 in August to the current $12.80. The coin formed a death cross pattern on Nov. 6 as the 50-day and 200-day Exponential Moving Averages crossed each other—one of the riskiest patterns in technical analysis.

Additionally, the token has formed a bearish pennant pattern consisting of a vertical line and symmetrical triangle, with the two lines approaching their confluence level. A small double-top pattern has also emerged at $14.25 with a neckline at $12.95. These patterns collectively suggest a strong bearish breakout is likely, with potential downside toward the November low at $11.60.