- Chainlink (LINK) rose to a high of $8.44 before retreating amid broader market uncertainty.
- A leading crypto analyst warns that a weekly close below the macro downtrend line could signal further losses for LINK.
- “Macro breakout postponed,” the analyst commented on Monday.
Chainlink posted a strong performance during the week of July 13–21, including a one-day gain of about 20% on July 20 as it reached a three-month peak at $8.44. On-chain volume surged past $347 million as traders entered the market on the back of favorable network developments.
Chainlink price analysis
At one point, LINK bulls looked poised to retest a significant technical level just below $10, with price action threatening to break a long-running macro downtrend.
Crypto analyst Rekt Capital highlighted this possibility, noting that a weekly close above the macro downtrend line would be an important sign of bullish momentum.
However, Chainlink’s price pulled back from that key resistance and produced a weekly close underneath the downtrend line. According to the analyst, that outcome suggests the anticipated macro breakout has, for now, failed to materialize.
“$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 (formerly Twitter).
Chainlink weekly price chart showing LINK’s new weekly close. Source: Rekt Capital.
If price falls below $7.00, the next notable support area may be near $5.00. On the upside, $8.50 and $10.00 are key supply zones to watch.
The analyst also emphasized that Chainlink’s recent weekly close below its range-high resistance is a pattern that has repeated in previous cycles. That suggests the recent bounce could be a relief rally that confirms the range-high as resistance rather than signaling a sustained breakout.
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
Traders and investors should monitor whether LINK can reclaim the macro downtrend as support; failure to do so would increase the likelihood of further downside toward the next support levels. Conversely, a decisive weekly close above the downtrend would reopen the path toward the $8.50–$10.00 supply zone and could reestablish bullish momentum.