A widely followed crypto analyst says a mid-cap altcoin could experience a massive correction as whale trades, including the assets, see a decline.
Crypto trader Ali Martinez tells According to its 29,900 followers on the social media platform X, blockchain oracle provider Chainlink (LINK) could drop as much as 50% from its current price.
“Chainlink: Unlike the June LINK price correction – where whale transactions and their holdings rose while prices fell – this time we see whale transactions decreasing while their holdings remain stable.
This is not good! If LINK breaks below the $5 support level, you can expect a correction to $4 or even $3.”
According to his chart, whale trades of at least $1 million in LINK since May 19 reached a daily high of about 20 since May 19 in late July. In the last days of August, trades fell below 10 and by August 31 they were virtually non-existent. A dip in whale trades is a bearish sign indicating a lack of trading interest.
Chainlink is currently trading at USD 5.98, down 0.1% in the last 24 hours.
Then the analyst say that Bitcoin (BTC) could drop 10% of its current value if it loses a key support level.
“Bitcoin: On-chain data suggests BTC lacks strong support below USD 25,400.
If BTC falls below this threshold, it could quickly correct to $23,340.”
Bitcoin is trading at $25,827 at the time of writing, down 4.7% in the past 24 hours.
Finally, there is the analyst warning that Ethereum (ETH) layer-2 blockchain Optimism (OP) is trading in a bearish flag pattern, indicating that it is on the verge of a continued downward move.
“Optimism doesn’t exactly seem optimistic! OP is developing a bear flag on the 4-hour chart.”
The trader’s chart suggests that optimism could dip to $0.71 over the next two months, down more than 47% from its current price of $1.35 at the time of writing.
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Featured image: Shutterstock/SVPanteon/David Sandron