Chainlink (LINK), the decentralized oracle network that provides real-world data to blockchain networks, has seen volatility in its price over the past months. The coin is currently trading around $7.7 mark.
However, according to widely-followed crypto analyst Rekt Capital, LINK may be positioning itself for a major breakout.
Rekt Capital notes that after following a downtrend (depicted in red), LINK strongly rebounded from its range low. This was followed by an impressive 44% rally as LINK revisited its range high resistance. Although LINK has not yet broken out from this long-term macro range, it is attempting to close weekly above the macro downtrend line.
If LINK can close above this downtrend on the weekly timeframe, Rekt Capital suggests it could set up a retest of the line as support. A successful retest of the downtrend would likely propel LINK to revisit the macro range high once again. But a confirmed breakout from the range would only come if LINK could close above the range high and then retest it as support.
In summary, while still constrained by resistance, LINK’s recent price action indicates it is positioning for an eventual breakout. Rekt Capital and other analysts are closely watching to see if LINK can close above key levels that would pave the way to testing the top of its multi-month trading range. A break from this range could signal a new bullish trend for the LINK price.
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