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 social media platform X that the leading decentralized oracle network’s native asset appears to have pushed a mid-cycle top.
According to the analyst, a deep corrective move is now in store for LINK, after witnessing massive rallies in recent months.
“I understand that after 10 months of just rising and a 4x rally, a 2-3 month pullback with a 50-60% drawdown is normal, natural and healthy.
Everything else is deeper than that, but above the origin of the impulsive movement, a higher low and technically fine.
The trader uses the Elliott Wave theory, which states that a bullish asset tends to witness a rise of five waves before retreating. 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 towards support at $7.26.
At the time of writing, LINK is worth $16.49.
Credible is also bearish on Ethereum (ETH) scaling solution Polygon (MATIC), predicting the altcoin to fall to $0.585.
“Hello MATIC my old friend, it’s time to sell you short again.
Up to 5-8% more potential upside, looking for at least 20% downside.”
At the time of writing, MATIC is worth $0.706.
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Featured image: Shutterstock/Relight Motion