• Top Analyst Rekt Capital is skeptical about the potential Chainlink (LINK) immediate price outlook.
• Despite apparent bullish fundamentals, he believes LINK risks facing a downturn.

Chainlink (LINK), the leading blockchain oracle provider, is currently under scrutiny from a prominent crypto trader, Rekt Capital as he raised concerns about a potential downturn.

Chainlink’s Crucial Resistance Level

Rekt Capital, a pseudonymous crypto trader with a huge following on social media platform X, has raised a red flag for Chainlink (LINK). The trader suggests that LINK is on the verge of a significant correction and emphasizes the importance of closing above the $14.70 level for the coin to rally higher. At the time of writing, LINK is trading just below this resistance level at $13.98.

Rekt Capital’s analysis highlights the struggle of LINK to break above the critical resistance level, represented by a red box on the charts he shared as seen above. The trader indicates that a failure to overcome this resistance could result in a downturn for the altcoin.

The Relative Strength Index (RSI), a momentum indicator, further supports the bearish case by signaling that Chainlink may be overbought. Despite the warnings, there are positive developments on the horizon for Chainlink. The network is set to unveil the Chainlink Staking v0.2 platform. This represents a giant leap forward from the previous version released about a year ago. 

The Priority Migration phase, starting today, aims to ensure continuity for existing users by providing a dedicated window for stakers to transfer their LINK to the upgraded platform.

Unlike Rekt Capital, market analyst “Mr.Ape” remains bullish on Chainlink, citing both technical setups and fundamental reasons tied to the upcoming upgrade. Mr.Ape predicts a new year high, surpassing $16 and reaching $20.

An essential factor contributing to Chainlink’s recent success is the substantial accumulation of LINK by the 200 largest Chainlink wallets. These whales added approximately 40.18 million tokens around October 17, coinciding with a sharp 125 percent rise in LINK’s price. 

Rekt Capital’s Predictions for Other Cryptocurrencies

In addition to Chainlink, Rekt Capital is also keeping an eye on Ocean Protocol (OCEAN), a decentralized data service facing potential macro resistance. The trader emphasizes the significance of a monthly close above the $0.47 level for OCEAN to signal further upward potential. 

A monthly close above this level is deemed as bullish, indicating a positive trend for the altcoin. Currently, OCEAN is trading at $0.46, with the monthly close anticipated to provide insights into its future trajectory.

Shifting the focus to the interoperability chain Polkadot (DOT), Rekt Capital noted that the altcoin is on the brink of confirming a new longer-term uptrend. The trader pointed out that Polkadot is steadily breaking above its downward resistance above the $5 mark, signaling a potential shift in trend.

According to the most recent market data, DOT is worth $5.2, a resilient showing that suggests it is on the verge of launching a new macro rally. Notably, traders and investors will be observing Polkadot’s movements to see if it can maintain its upward pace in the coming weeks.