A widely followed crypto analyst says that one mid-cap altcoin could see a massive correction as whale transactions including the asset see a decline.
Crypto trader Ali Martinez tells his 29,900 followers on the social media platform X that blockchain oracle provider Chainlink (LINK) could dip by as much as 50% from its current price.
“Chainlink: unlike the June LINK price correction – where whale transactions and their holdings rose as prices fell – this time, we’re seeing whale transactions decline while their holdings stay steady.
This isn’t good! If LINK breaks below the $5 support level, expect a correction to $4 or even $3.”
According to his chart, whale transactions of at least $1 million in LINK since May 19th reached a daily high of about 20 in late July. In the final days of August, transactions declined to under 10 and were nearly nonexistent on August 31st. A dip in whale transactions is a bearish sign indicating a lack of trading interest.
Chainlink is currently trading for $5.98, down 0.1% in the last 24 hours.
Next, the analyst says that Bitcoin (BTC) could decline 10% from its current value if it loses a key support level.
“Bitcoin: On-chain data suggests that BTC lacks strong support below the $25,400 mark.
If BTC breaks below this threshold, it could swiftly correct down to $23,340.”
Bitcoin is trading for $25,827 at time of writing, down 4.7% in the last 24 hours.
Lastly, the analyst is warning that Ethereum (ETH) layer-2 blockchain Optimism (OP) is trading in a bearish flag pattern, suggesting that it is on the verge of a continued move to the downside.
“Optimism appears less than optimistic! OP is developing a bear flag on the 4-hour chart.”
The trader’s chart suggests Optimism could decline to $0.71 over the next two months, a more than 47% drop from its current price of $1.35 at time of writing.
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Featured Image: Shutterstock/SVPanteon/David Sandron
Source: https://dailyhodl.com/2023/09/01/trader-says-ethereum-based-altcoin-could-crash-by-up-to-50-updates-outlook-on-bitcoin-btc-and-optimism-op/