A widely respected cryptocurrency strategist is warning that Chainlink (LINK) could be on the verge of a major correction.
The underlying asset of the leading decentralized oracle network appears to have printed mid-cycle highs, pseudonymous analyst Credible told his 394,500 followers on social media platform X.
According to analysts, a deep corrective action is now on the cards for LINK after witnessing massive rallies over the past few months.
“I understand that it is normal, natural and healthy to go up for 10 months and then go up 4x and then go down 50-60% for 2-3 months.
Moreover, anything deeper than that, but above the origin of the impulsive movement, is higher and technically entirely subtle.”
Traders use Elliott Wave Theory, which states that bullish assets tend to see five waves rising before falling. Looking at the trader’s chart, he seems to be implying that LINK has completed its five-wave rally and is currently poised for a correction towards the $7.26 support level.
As of this writing, LINK is worth $16.49.
Credible is also bearish on Ethereum (ETH) scaling solution Polygon (MATIC), predicting that the altcoin will fall to $0.585.
“Hello MATIC, my old friend, it’s time for another quick greeting.
“There is up to 5-8% more upside and a minimum downside of 20%.”
As of this writing, MATIC is worth $0.706.
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