A prominent crypto analyst has issued a cautionary statement, suggesting that a popular alternative cryptocurrency could be on the verge of a substantial decline. Ali Martinez, a well-regarded trader in the crypto community, shared his concerns with his 66,600 followers on X, indicating that Chainlink (LINK), a decentralized oracle provider, might experience a significant price correction after failing to maintain a crucial support level.

Martinez warned, “LINK faces a potential 45% price correction if it drops below $12.70!”

Source: Ali Martinez/X

According to Martinez’s analysis, LINK appears vulnerable to breaking down from a head-and-shoulders reversal pattern, typically signaling the beginning of a downtrend in technical terms. His chart also suggests a possible drop for LINK below $7.00. As of the latest update, LINK is trading at $12.22, marking a 1.55% decrease over the past 24 hours.

Shifting focus to Bitcoin (BTC), Martinez speculated that Bitcoin could dip below $50,000 before encountering substantial buying interest from bulls. He pointed out, “Bitcoin currently lacks significant support, with the main demand zone around $47,000. For the bullish trend to resume, BTC needs to close and hold above $61,000.”

Source: Ali Martinez/X

Additionally, Martinez highlighted recent movements by crypto whales, noting that they have sold more than 30,000 BTC over the past month, totaling approximately $1.8 billion. In the last week alone, 21,000 BTC worth $1.24 billion have been transferred to crypto exchanges, potentially indicating intentions to sell in the open market.

As of the latest data, Bitcoin, the largest cryptocurrency by market capitalization, is trading at $56,235, reflecting a 1.16% decline in the last 24 hours.

Stay Informed –
Subscribe
to receive email alerts directly to your inbox
Monitor
Price Action
Follow us on
X
,
Facebook
, and
Telegram
Explore
The Daily Hodl Mix

Disclaimer: The opinions expressed on The Daily Hodl are not financial advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Users are reminded that all transfers and trades are undertaken at their own risk, and any resulting losses are their responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it provide investment advisory services. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney