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 inboxCheck Price Action
Follow us on X, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Relight Motion
The post Analyst Issues Chainlink Warning, Says 55% Correction for LINK Natural and Healthy Following 4X Rise appeared first on The Daily Hodl.
