Crypto analyst CrediBULL Crypto recently warned about this Chain link (LINK) could experience a 50% to 60% price drop. However, based on his explanation, LINK holders should not worry as such a price drop is part of the the growth of crypto tokens.
Why Chainlink will experience a price drop
CrediBULL Crypto explained in an X (formerly Twitter) after that a “50-60% drawdown is normal, natural and healthy” considering Chainlink has only experienced ten months of upside and a 4x rally.” The analyst expects this price drop would take about two to three months and suggested that Chainlink could see it short price increasesbut that makes the current bearish trend.
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In a video posted on his YouTube channel, CrediBULL Crypto further explained why he is so confident in shorting Chainlink. He was referring to the rise of the open interest of crypto token and claimed that many leveraged players entered Chainlink through the pump at a large resistance level. He expects that the investors who have opened long positions will likely start closing their positions once Bitcoin experiences a pullback and the crypto market starts to bleed again.
The crypto analyst added that these investors will capitulate at the lows, which will drive Chainlink’s price to the lows. CrediBULL Crypto claimed that this move will bring LINK back to $11.96, down about 30% from the current price level. Based on this, he revealed that he wants to short Chainlink around $16, which is the likely level for rejection.
Same expectations for meme coins
CrediBULL Crypto also expects meme coins to experience a significant price drop given the parabolic rally they have experienced since the beginning of the year. Meme coins Dog hat (WIF) And Pepe (PEPE) are the top year-to-date (YTD) winners among the top 50 crypto tokens, with price gains of over 1,400% and 500% respectively.
The crypto analyst warned that some major meme coins have already peaked and are likely to see a significant decline. In the YouTube video he posted, he also provided insight into how low Dogecoin, WIF and Pepe could fall.
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For Dogecoin, he predicts that the main meme currency could drop to $0.10. However, CrediBULL Crypto noted that he cannot short Dogecoin yet as he expects a relief pump to $0.18, the range he is looking for to open a short position.
In the meantime he predicts that WIF could drop to $1.6, revealing that he will try to short to $3.90 as he expects the meme coin to get one last push higher before sinking lower. CrediBULL also predicts a significant price drop for PEPE. He claims that the meme coin could experience a drop of as much as 60% since he recently launched a new all-time record (ATH).
Featured image created with Dall.E, chart from Tradingview.com