Chainlink (LINK) traded to highs of $8.44 before retreating amid broader market uncertainty.
A top crypto analyst says LINK seeing a weekly close below the macro downtrend line portends fresh losses.
The “Macro Breakout is postponed” the analyst noted on Monday.
Chainlink posted an impressive run in the week of July 13-21, notching a +20% gain in a single day on July 20 as it hit a three-month high of $8.44. On-chain volume spiked to over $347 million as traders poured into the altcoin amid positive network developments.
Chainlink price analysis
LINK bulls appeared to be on the way to retesting a key technical level just under $10, with price poised to break a multi-year macro downtrend.
Crypto analyst Rekt Capital highlighted this on Friday, identifying a potential weekly close above the macro downtrend line as a likely indicator of bullish strength.
As can be seen in the chart below, Chainlink price has recoiled from the crucial hurdle with a weekly close below. According to the analyst, the scenario where the would-be macro breakout has fizzled out (at the moment.)
“$LINK has ultimately performed its new Weekly Close below the Macro Downtrend. As a result, the Macro Breakout is postponed. Unless #LINK is able to reclaim this Macro Downtrend as support, price is positioning itself up for a rejection from here,” Rekt Capital shared on X (fka Twitter).
Chainlink weekly price chart showing LINK new weekly close. Source: Rekt Capital.
LINK currently trades near $7.60, largely flat in the past 24 hours. Investors have seen gains recorded over the past week cut to just 1%. LINK/USD is up 20% in the past 30 days.
If prices fall below $7.00, the next major support zone could be around $5.00. On the upside, $8.50 and $10 are key supply zones.
Here’s something else the analyst points out about Chainlink price performance.
In the end $LINK Weekly Closed below its Range High resistance just like it did many times in the past
And so this #LINK bounce may be a relief rally to confirm the Range High as resistance
If that’s the case LINK could drop lower in this black-black range#Crypto #Chainlink pic.twitter.com/yKlMNiPkqE
— Rekt Capital (@rektcapital) July 31, 2023
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