A prominent cryptocurrency analyst has issued a warning that one of the popular altcoins could be headed for a significant correction.
Cryptocurrency trader Ali Martinez told his 66,600 followers on social media platform X that decentralized oracle provider Chainlink (LINK) could see a massive price drop after failing to hold a key support level.
“LINK could potentially face a 45% price drop if it falls below $12.70!”
According to the trader’s chart, LINK appears to be in danger of breaking out of a head and shoulders reversal pattern. In technical analysis, this pattern often indicates the beginning of a downtrend for an asset.
Trader charts seem to be predicting LINK will drop below $7.00. LINK is trading at $12.22 at the time of writing, down 1.55% over the last 24 hours.
Regarding Bitcoin (BTC), Martinez said that BTC could crash below $50,000 before bulls take advantage of the downtrend to take advantage.
“Bitcoin currently lacks significant support. The main key demand barrier is around $47,000, and BTC needs to close above $61,000 to resume the bull run.”
The analyst then highlighted that cryptocurrency whales have unloaded tens of thousands of BTC in the past 30 days.
“Bitcoin whales sold over 30,000 BTC last month, worth about $1.8 billion!”
He also noted that in the past week alone, 21,000 BTC worth $1.24 billion were transferred to cryptocurrency trading platforms, which could potentially be sold on the open market.
At the time of writing, the top cryptocurrency by market cap is trading at $56,235, down 1.16% over the last 24 hours.
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