A widely followed crypto analyst says a mid-cap altcoin could see a huge correction as whale trading with the asset has declined.
Crypto trader Ali Martinez says His 29,900 followers on social media platform X could see blockchain oracle provider Chainlink ( LINK ) fall as much as 50% from its current price.
“ChainLink: Unlike the June LINK price correction – where whale trades and their holdings increased as the price fell – this time, we see whale trades decrease while their holdings remain stable.
It’s not good! If LINK breaks below the $5 support level, expect a correction to $4 or even $3.”
According to his chart, whale trades of at least $1 million on LINK since May 19 reached a daily high of about 20 in late July. In the last days of August, trading fell below 10 and was almost non-existent on 31st August. A decline in whale trading is a bearish sign indicating a lack of trading interest.
Chainlink is currently trading at $5.98, down 0.1% in the last 24 hours.
Next, the analyst said That Bitcoin (BTC) could drop 10% from its current price if it loses a key support level.
“Bitcoin: On-chain data suggests BTC lacks strong support below the $25,400 mark.
If BTC breaks below this threshold, it could quickly drop to $23,340.”
Bitcoin is trading at $25,827 at the time of writing, down 4.7% in the last 24 hours.
Finally, the analyst Dr warning The Ethereum (ETH) Layer-2 Blockchain Optimism (OP) is trading in a bearish flag pattern, suggesting that it is on a downward trend.
“Optimism is appearing less than optimistic! OP is creating a bear flag on the 4-hour chart.”
Trader’s charts suggest that optimism could drop to $0.71 in the next two months, a decline of more than 47% from the current price of $1.35 at the time of writing.
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