A widely followed crypto strategist warns that the decentralized oracle network Chainlink (LINK) could witness a significant move to the downside.
Pseudonymous analyst Rekt Capital tells his 348,800 Twitter followers that Chainlink now looks bearish after failing to take out its macro downtrend resistance.
“The most recent LINK downside means that the price is positioning itself for a weekly close below the macro downtrend, postponing the breakout.”
According to the crypto analyst, the failed breakout suggests that LINK is still range bound, and in a worst-case scenario, Chainlink could correct all the way down to $6.13, representing a 16% retracement from current prices.
“The worst-case scenario for LINK if its 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.”
At time of writing, LINK is worth $7.57, below Rekt Capital’s range high resistance on the monthly timeframe.
Looking at Bitcoin (BTC), the analyst says that the crypto king lost its bullish market structure on the weekly chart after breaking below its higher low setup at $29,500. However, Rekt Capital says that BTC is still managing to stay above its horizontal support at $29,245.
“It showcases the lost higher low and how ($29,245) is currently holding price.”
At time of writing, BTC is worth $29,290.
As for Dogecoin (DOGE), the trader says the top memecoin is currently respecting its diagonal resistance at $0.081.
“DOGE currently at pattern resistance.”
At time of writing, Doge is trading for $0.078.
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