A widely followed crypto strategist is warning that Chainlink (LINK) may be on the verge of a massive correction.
Pseudonymous analyst Credible tells his 394,500 followers on the social media platform X that the native asset of the leading decentralized oracle network appears to have printed a mid-cycle top.
According to the analyst, a deep corrective move is now in the cards for LINK after witnessing massive rallies in the last few months.
“I understand that after 10 months of up only and a 4x rally, a pullback lasting 2-3 months with a 50-60% drawdown is normal, natural and healthy.
Further, anything deeper than that but above the origin of the impulsive move is a higher low and technically totally fine.”
The trader uses the Elliott Wave theory, which states that a bullish asset tends to witness a five-wave rise before pulling back. Looking at the trader’s chart, he seems to suggest that LINK has completed its five-wave rally and is now poised for a correction toward support at $7.26.
At time of writing, LINK is worth $16.49.
Credible is also bearish on Ethereum (ETH) scaling solution Polygon (MATIC), predicting that the altcoin will fall to support at $0.585.
“Hello MATIC my old friend, it’s time to short you once again.
Up to 5-8% more potential upside, looking for 20% downside at minimum.”
At time of writing, MATIC is worth $0.706.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Featured Image: Shutterstock/Relight Motion