One crypto analyst is updating his outlook on Cardano (ADA), Polygon (MATIC) and Chainlink (LINK) against Bitcoin (BTC) as the altcoin market flashes weakness.
In a new video update, DataDash host Nicholas Merten warns his 511,000 YouTube subscribers that many altcoin projects could see as much as a 95% correction in the current cycle from their all-time highs.
“We can take it back here, look at a whole range of different plays here in the market, and you will see similar patterns here – altcoins typically correct. Even Ethereum in the last bear market in 2018 corrected over 95% from the all-time highs. So don’t doubt that history could repeat itself.”
Looking at smart contract platform Cardano against Bitcoin, Merten warns of a potential 50% decline on the ADA/BTC chart from its current price level of about 0.00001000 BTC ($0.259) to about 0.00000450 BTC ($0.12).
“If stablecoin liquidity isn’t there and if optimism isn’t there and regulatory concerns are growing ADA is not going to move higher…
We got to ask ourselves whether or not we can hold… this line of higher lows against Bitcoin. And if we can’t… I think you’re looking at 500 Sats (Satoshis) to about 450 for the next level. That is over 50% here from where we are now.”
Next, Merten says layer-2 scaling solution Polygon could collapse by as much as 90% against Bitcoin from its all-time highs.
“If liquidity isn’t here, we’re likely moving down to the historic line of prior support, which means that we’re going to probably be correcting rather than 70% down to around 78% down towards around 1,450 Satoshis here. Not a good look here for MATIC.
And if it can’t hold that line… it could potentially go down here towards 1,000 Sats. That’s where you start getting into the traditional corrective territory of 85% to 90%.”
Polygon is worth $0.00002250 BTC ($0.58) at time of writing, down 4.9% during the last 24 hours.
Lastly, Merten predicts decentralized oracle service Chainlink may be headed to a 90% decline against Bitcoin from its all-time high.
“[Chainlink] peaked out in August of 2020 and since then has been bleeding against Bitcoin. Now during the bull market, sure, maybe its dollar value came up to some degree, but it was massively underperforming Bitcoin and it has continued to do so. If this continues to decline to say 1,700 [Sats] this will have been a 90% decline from its peak against Bitcoin.”
Chainlink is trading at $0.000203 BTC ($5.25) at time of writing, down 3% during the last 24 hours.
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Source: https://dailyhodl.com/2023/06/16/trader-maps-cardano-polygon-and-chainlinks-paths-forward-against-king-crypto-bitcoin-heres-his-outlook/