Chainlink (LINK) Breakdown Ahead? Analyst Flags Power of 3 Pattern Targeting Lower Liquidity
Chainlink finds itself in a tense spot. The LINK price has been pulled in two completely different directions over the past few days. The geopolitical situation had a large impact on the cryptocurrency markets as strikes between the US and Israel against Iran caused a sell-off on February 28th, causing LINK to follow suit with the rest of the market.
On-chain activity showed that whales accumulated 370,000 LINK, equivalent to approximately 3.5 million USD, just one day before. Add to that growing social buzz about a rumored rewards program for oracle users and stakers, and you have a market filled with mixed signals.
Despite those crosscurrents, trader Sjuul from AltCryptoGems believes the technical picture is straightforward. In his view, the LINK price is expanding lower, and his “power of 3” setup continues to play out.
What you'll learn 👉
Chart Breakdown: Inverted Power of 3 in Play
On the 4-hour chart shared by Sjuul, the LINK price spent weeks trapped in a clear range, capped near $9.20 on the upside and supported around $8.00 below. That sideways structure built tension. The big question was always which side would break first.
Price briefly pushed above the $9.20 resistance, spiking toward the $9.50–$9.60 zone. That breakout did not hold. Instead, it turned into a classic deviation. Buyers chased the move, only to see the LINK price fall back below resistance. The rejection is highlighted in the red zone on the chart and marks the manipulation phase in the inverted power of 3 models.
From there, the structure flipped. Once resistance was lost and price accepted back below it, downside expansion became the higher-probability path. Now the LINK price is moving inside the green expansion area on the right side of the chart, drifting closer to the $8.00 support.
If that level breaks decisively, the next logical target sits in the $7.20–$7.40 region. That lower band represents resting liquidity and stop clusters. Markets often gravitate toward those areas before finding balance.
Geopolitics vs Whale Accumulation
The timing of this breakdown is important. The broader crypto sell-off tied to Middle East escalation added fuel to the rejection at resistance. When macro stress hits, technical invalidations tend to accelerate, and that is exactly what unfolded here.
At the same time, whale accumulation cannot be ignored. Large holders buying into weakness often precedes stabilization. The 370,000 LINK purchased on February 27 shows calculated positioning below resistance. Still, accumulation does not automatically cancel a bearish short-term setup.
The LINK price can dip into deeper liquidity first and only then form a stronger base. That kind of liquidity sweep is common before a larger reversal attempt.
Read Also: AI Coins Refused to Die in February – Here’s What TAO, LINK & Others Just Built
What Would Change the Structure
For the bearish scenario to fully develop, the LINK price needs to break below $8.00 and hold under it. That would likely trigger a move toward the lower liquidity zone around $7.20.
On the other hand, reclaiming $9.20 and holding above it would invalidate the inverted power of 3 ideas. Until that happens, the chart leans defensive.
For now, the technical structure points lower, even with whales stepping in. The next reaction at $8.00 will likely determine whether the LINK price stabilizes or accelerates toward deeper liquidity before any meaningful rebound.
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