A widely followed crypto analyst says a mid-cap altcoin could see a massive correction as whale transactions, including the asset, record a decline.
Crypto trader Ali Martinez told His 29,900 followers on the social media platform
“Chainlink: Unlike the LINK price correction in June – where whale transactions and their holdings increased while prices fell – this time we see a decline in whale transactions while their holdings remain stable.
This is not good! If LINK breaks below the $5 support level, a correction to $4 or even $3 can be expected.”
Source: Ali Martinez/X
According to his chart, whale transactions in LINK worth at least $1 million since May 19 reached a daily high of around 20 in late July. In the final days of August, transactions fell to below 10 and were almost non-existent by August 31. A decline in whale transactions is a bearish sign of a lack of trading interest.
Chainlink is currently trading at $5.98, down 0.1% in the last 24 hours.
Next, the analyst says that Bitcoin (BTC) could fall 10% from its current value if it loses a key support level.
“Bitcoin: On-chain data suggests BTC lacks strong support below $25,400.
If BTC falls below this threshold, it could quickly decline to $23,340.”
Source: Ali Martinez/X
Bitcoin is trading for $25,827 at the time of writing, down 4.7% in the last 24 hours.
After all, it is the analyst warning that Ethereum (ETH) Layer 2 Blockchain Optimism (OP) is trading in a bearish flag pattern, suggesting it is on the verge of further downward movement.
“Optimism seems less than optimistic! OP is developing a bear flag on the 4-hour chart.”
Source: Ali Martinez/X
The trader’s chart suggests that Optimism could drop to $0.71 over the next two months, a decline of more than 47% from the current price of $1.35 at the time of writing.
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