Chainlink, Cardano and Solana are facing bearish technical setups after key chart structures began showing signs of weakness, according to crypto market analyst Ali Charts. In a series of posts published on October 7, the analyst highlighted potential downside levels for LINK, ADA and SOL, while stressing specific price points that could determine whether the bearish setups develop further.
The analysis focuses on technical patterns across different timeframes rather than fundamental developments surrounding the three projects. Chainlink is showing a potential head-and-shoulders breakdown on its four-hour chart, Cardano has been rejected from the upper boundary of an ascending channel, while Solana is testing a breakdown of support on its own four-hour chart.
The three cryptocurrencies are among the largest assets in the market, meaning significant moves in LINK, ADA or SOL can attract considerable attention from traders. However, the levels identified by Ali Charts represent technical scenarios and should not be interpreted as guaranteed price targets.
LINK and ADA Face Important Technical Levels
For Chainlink, Ali Charts said LINK appears to be breaking below the neckline of a head-and-shoulders formation on its four-hour chart. The pattern is generally monitored by technical traders because a confirmed break below the neckline can indicate increasing selling pressure.
According to the analysis, $13.56 is the key level that LINK needs to remain below for the bearish setup to remain in play. If the pattern develops as outlined, the first downside target is around $12.39, while $11.98 becomes another level to watch if selling pressure intensifies.
The LINK setup therefore depends heavily on what happens around the $13.56 threshold. A move back above that level could weaken the bearish interpretation, while continued trading below it could keep the lower targets in focus for traders following the pattern.
Cardano is also showing weakness, although its technical structure differs from Chainlink. Ali Charts said ADA was rejected near the top of an ascending channel on its daily chart, suggesting that buyers were unable to maintain momentum near the upper boundary.
If that rejection remains intact, the analyst identified approximately $0.21 as the potential downside area near the lower boundary of the channel. Unlike the LINK analysis, the ADA setup is based on the broader structure of a daily ascending channel rather than a four-hour head-and-shoulders pattern.
Solana Breaks Channel Support
Solana is facing another important technical test. According to Ali Charts, SOL is breaking below support in a four-hour channel, with $117 identified as the confirmation level for the breakdown.
A four-hour close below $117 would, according to the analysis, confirm the bearish move and put $114 in focus. If SOL subsequently loses that level, the next potential downside area highlighted by the analyst is $111.
The SOL setup makes $117 an important short-term level for traders watching the market. A sustained recovery above the area could challenge the breakdown thesis, while continued weakness below it would keep the lower targets relevant.
Taken together, the three charts show a common theme: important technical structures are being tested at the same time. LINK is dealing with a potential head-and-shoulders breakdown, ADA is retreating from channel resistance, and SOL is testing a break below channel support.
The analysis comes as traders continue to monitor whether recent weakness develops into a broader market correction or remains limited to individual assets. Technical patterns can change quickly, particularly in crypto markets where volatility can invalidate chart structures within hours.
For LINK holders, $13.56 remains the level highlighted by Ali Charts, with $12.39 and $11.98 representing potential downside areas if the bearish structure develops. ADA traders are watching the channel around $0.21, while SOL traders have $117, $114 and $111 as the key levels identified in the analysis.
None of these levels guarantees that the three cryptocurrencies will reach the stated targets. They represent potential scenarios based on chart structures and would need to be confirmed by subsequent price action. For traders, the reaction around each support or resistance zone could therefore be more important than the targets themselves.
With LINK, ADA and SOL all showing technically weaker structures, the coming price action will determine whether the reported breakdowns develop into deeper corrections or fail as buyers reclaim key levels. For now, the focus remains firmly on the support zones identified by the analyst rather than on a confirmed continuation of the downside.
About The Author
