An influential cryptocurrency analyst is sounding the alarm, warning that a popular altcoin may be on the brink of a significant correction.
Crypto trader Ali Martinez shared with his 66,600 followers on the social media platform X that Chainlink (LINK), a decentralized oracle provider, could experience a substantial price drop after failing to sustain a crucial support level.
“LINK is facing a potential 45% price correction if it falls below $12.70!”
According to the trader’s analysis, LINK appears to be at risk of breaking down from a head-and-shoulders reversal pattern, signaling a potential downtrend.
The chart also suggests that LINK could drop below $7.00. Currently, LINK is trading at $12.22, reflecting a 1.55% decrease in the last 24 hours.
Shifting focus to Bitcoin (BTC), Martinez predicts that Bitcoin might dip below $50,000 before the bulls step in to capitalize on the downturn.
“Bitcoin is currently lacking strong support. The key demand level is around $47,000, and for the bull market to resume, BTC needs to close and hold above $61,000.”
Furthermore, the analyst highlights that crypto whales have offloaded tens of thousands of BTC in the last month alone.
“Bitcoin whales have sold over 30,000 BTC in the past month, totaling approximately $1.8 billion!”
Moreover, in just the past week, 21,000 BTC worth $1.24 billion have been transferred to cryptocurrency exchanges, potentially signaling upcoming sales on the open market.
As for the top cryptocurrency by market cap, Bitcoin is currently trading at $56,235, reflecting a 1.16% decrease in the last 24 hours.
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Generated Image: Midjourney