Cryptocurrency whales are investing heavily in altcoins that run on the Ethereum (ETH) network, according to a prominent on-chain analyst.
Ali Martinez told her 66,900 followers on social media platform X that deep-pocketed investors had amassed tens of millions of dollars worth of decentralized oracle Chainlink (LINK) in just seven days.
“Chainlink whales bought over 6.2 million LINK last week, for a total value of approximately $76.88 million!”
Last week, Martinez warned that Chainlink appeared to have broken out of a head and shoulders reversal pattern after breaking out of support at $12.
Traders watch charts closely for head and shoulders patterns because they expect the asset to show a downward price movement.
With LINK trading slightly above $13, the trader warned that the Ethereum-based altcoin could be in the process of flipping its previous support level into resistance.
“Beware of Chainlink! The recent surge to $13 may have been a retest of the neckline of the head and shoulders pattern.”
Looking at the trader’s chart, it seems like he is predicting that LINK could crash to $6.80, which would represent a drop of around 50% from current levels.
As of this writing, LINK is trading at $13.10, up more than 6% over the past day.
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