Crypto currency analyst and trader Rekt Capital, closely followed by crypto currency investors, warned that the decentralized oracle network Chainlink (LINK) could make a significant downward move. The analyst also evaluated the current situation for the largest memecoin Dogecoin (DOGE) and the crypto king Bitcoin (BTC).
“Downtrend” Warning for Chainlink
Anonymous crypto currency analyst and trader Rekt Capital stated that Chainlink has entered a downtrend after failing to break the macro downtrend resistance, and advised investors to be cautious. Rekt Capital said, “The recent downward price movement of LINK indicates a delay in breaking upwards due to a weekly close below the macro downtrend. “
The crypto currency analyst stated that the failed breakout in LINK is dependent on the price range and showed that in the worst case scenario, Chainlink could drop by 16% from the current price to $6.13, saying “If monthly closes are below the high resistance of the black range, the worst case scenario for LINK is to fall to the support range of $6.13 as part of the consolidation dependent on the range between two black lines.”
At the time of writing this article, LINK is trading below the resistance range indicated by Rekt Capital on the monthly time frame, at $7.61.
The analyst also looked at the largest memecoin Dogecoin, stating that the native asset of the network, DOGE, continues to stay below the declining resistance line at $0.081, warning investors of a possible pullback by saying “DOGE is currently trading just below the formation resistance.”
Bitcoin’s Bullish Outlook Disrupted
Finally, the analyst looked at the crypto king Bitcoin and said that the largest cryptocurrency lost its bullish outlook on the weekly chart after falling below $29,500. Rekt Capital stated that BTC managed to stay above the horizontal support at $29,245, indicating that the price could bounce back soon.
CoinMarketCap data shows that the price of BTC continues to stay above the $29,245 support with a 1.77% increase in the last 24 hours, trading at $29,439.
