Chainlink Positioned for Downside Move: Crypto Analyst Updates Bitcoin and Dogecoin Outlook

A well-known crypto strategist predicts a significant downside move for the decentralized oracle network, Chainlink (LINK).

Pseudonymous analyst Rekt Capital, followed by 348,800 Twitter users, warns of a bearish outlook for Chainlink as it struggles to breach its macro downtrend resistance. The recent downside movement indicates that the price is setting up for a weekly close below the macro downtrend, delaying the potential breakout.

Source: Rekt Capital/Twitter

The crypto analyst highlights that the unsuccessful breakout indicates Chainlink (LINK) remains range-bound. In a worst-case scenario, there's a possibility of a correction down to $6.13, representing a 16% retracement from current levels.

"If LINK's monthly close remains below the black range high resistance, the worst-case scenario would involve a drop to the range low support at $6.13 as part of its range-bound consolidation within the black-black range."

Source: Rekt Capital/Twitter

As of the current writing, LINK is valued at $7.57, below Rekt Capital's monthly range high resistance.

Regarding Bitcoin (BTC), the analyst points out that the crypto king has lost its bullish market structure on the weekly chart by breaking below its higher low setup at $29,500. Nevertheless, BTC is still holding above its horizontal support at $29,245, as indicated by Rekt Capital.

"The recent analysis showcases BTC's lost higher low and how it is currently finding support at $29,245."

Source: Rekt Capital/Twitter

At the time of writing, BTC is valued at $29,290.

Regarding Dogecoin (DOGE), the trader notes that the top memecoin is currently showing respect to its diagonal resistance at $0.081.

"DOGE currently encounters pattern resistance at $0.081."

Source: Rekt Capital/Twitter

As of the current moment, Doge is being traded at $0.078.

Aug 02, 2023

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