Chainlink (LINK) traded at highs of $8.44 before retreating back to a lower level amid market uncertainty. According to a top crypto analyst, if LINK closes its weekly chart below the macro downward trend line, it will cause further losses.
On July 13-21, LINK posted an impressive run, rising by 20% and hitting a three-month high of $8.44. This surge in volume was due to positive developments within the network.
LINK bulls were on their way to re-test a key technical level close to $10, with the price likely to break a multi-year macro trend. Friday saw cryptocurrency analyst Rekt Capital identify this potential outcome, with a weekly close above the macro trend line being seen as a potential indicator of bullish strength.
Unfortunately, LINK has not been able to break through the crucial hurdle and is now positioned for a rejection, according to Rekt Capital. The analyst shared a chart showing the new weekly close, noting that “the macro breakout is postponed”.
At the time of writing, LINK currently trades near $7.60, recording a 1% gain in the past week. If prices fall below $7.00, the next major support zone could be around $5.00. On the upside, key supply zones are at $8.50 and $10.
Rekt Capital also commented that LINK’s bounce may be a relief rally to confirm the range high as resistance. If this is accurate, LINK could drop lower within its black-black range.
