Chainlink’s Bearish Signal: Analyst Warns of Downside Move

A crypto analyst with a significant following on Twitter has issued a warning regarding the decentralized oracle network Chainlink (LINK).

The analyst, Rekt Capital, believes that LINK is showing signs of a bearish trend as it failed to break its macro downtrend resistance.

This could lead to a potential downward move in the future.

The most recent $LINK downside means that price is positioning itself for a Weekly Close below the Macro Downtrend, postponing the breakout#LINK #Crypto #Chainlink https://t.co/bkm6WQPfOr pic.twitter.com/lRJXu5KTNd

— Rekt Capital (@rektcapital) July 30, 2023

Rekt Capital explains that the recent downside in LINK’s price indicates that it might not break out of its current range. In a worst-case scenario, he suggests that Chainlink could correct all the way down to $6.13, which represents a 16% retracement from its current price.

Worst case scenario for $LINK if it Monthly Closes below the black Range High resistance?

A drop into the Range Low support at $6.13 as part of its range-bound consolidation within the black-black range#LINK #Crypto #Chainlink https://t.co/QLsxKIzaA2 pic.twitter.com/MTyxuu5hJL

— Rekt Capital (@rektcapital) July 31, 2023

Regarding Bitcoin (BTC), the analyst notes that it has lost its bullish market structure on the weekly chart by breaking below its higher low setup at $29,500.

However, BTC currently holds above its horizontal support level at $29,245.

As for Dogecoin (DOGE), Rekt Capital observes that it is currently respecting its diagonal resistance at $0.081.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.