A closely watched crypto analyst warns that one popular altcoin could be in for a major correction.
Crypto trader Ali Martinez told his 66,600 followers on social media platform X that decentralized oracle provider Chainlink (LINK) could face a sharp price drop due to its failure to hold a key support level.
Based on the trader’s chart, LINK appears to be at risk of breaking out of a head and shoulders reversal pattern. In technical analysis, this pattern often indicates the beginning of a downtrend for an asset.
The trader’s chart also appears to be predicting a drop below $7.00 for LINK. LINK is trading at $12.22 at the time of writing, down 1.55% over the past 24 hours.
Turning to Bitcoin (BTC), Martinez says Bitcoin could fall below $50,000 before BTC bulls take advantage of the decline.
“There is currently no significant support for Bitcoin. The main key demand wall is around $47,000 and BTC needs to close and hold above $61,000 for the bullish trend to resume.”
The analyst then points out that crypto whales have dumped tens of thousands of BTC in just the last 30 days.
“Bitcoin whales have sold over 30,000 BTC worth around $1.8 billion in the last month!”
He also notes that in the last week alone, 21,000 BTC worth $1.24 billion were sent to cryptocurrency exchanges that could potentially be sold on the open market.
At the time of writing, the largest crypto asset by market cap is trading at $56,235, down 1.16% over the past 24 hours.
Generated image: Midjourney
