Chainlink Faces Potential Downside Move, Proven by Crypto Analyst Alters Bitcoin and Dogecoin Projections

According to a well-known cryptocurrency analyst, the decentralized oracle network Chainlink (LINK) may experience a significant shift to the downside.

Rekt Capital, a pseudonymous analyst, tweets to his 348,800 followers that Chainlink is bearish after failing to overcome 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.”

Source: Rekt Capital/Twitter

The failed breakout shows that LINK is still range-bound, and in the worst case, Chainlink might correct down to $6.13, which would be a 16% retracement from current prices, according to the crypto expert.

“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.”

Source: Rekt Capital/Twitter

LINK’s current value, $7.57, is less than the monthly timeframe’s range high resistance set by Rekt Capital.

The expert claims that after breaking below its upper low setup at $29,500 and looking at Bitcoin (BTC), the cryptocurrency king has lost its bullish market structure on the weekly chart. Rekt Capital notes that BTC has maintained above its horizontal support at $29,245.

“It showcases the lost higher low and how ($29,245) is currently holding price.”

Source: Rekt Capital/Twitter

BTC is currently valued at $29,290.

The trader reports that Dogecoin (DOGE), the leading meme coin, is now honoring its diagonal resistance at $0.081.

“DOGE currently at pattern resistance.”

The price of Doge at the time of writing is $0.078.