A closely followed on-chain analyst says crypto whales are heavily loading up on an altcoin running on the Ethereum (ETH) network.
Ali Martinez tells his 66,900 followers on the social media platform X that deep-pocketed investors accumulated tens of millions of dollars worth of the decentralized oracle Chainlink (LINK) in just seven days.
[adinserter block="1"]“Chainlink whales have snapped up over 6.2 million LINK this past week, totaling approximately $76.88 million!”
Last week, Martinez warned that Chainlink appears to have broken down from a head-and-shoulders reversal pattern after it took out support at $12.
Traders keep a close watch on charts flashing a head-and-shoulders pattern as it suggests that the asset is poised to witness downside price action.
With LINK trading slightly above $13, the trader now warns that the Ethereum-based altcoin may be in the process of flipping a previous support level into resistance.
“Be careful with Chainlink! The recent upswing to $13 could have been a retest of the head-and-shoulders pattern’s neckline.”
Looking at the trader’s chart, he seems to predict that LINK could nosedive to as low as $6.80, a potential decline of nearly 50% from current levels.
At time of writing, LINK is trading for $13.10, up over 6% in the past day.
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