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.
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/SVPanteon/David Sandron
