Researcher Raises Concerns, Anticipates Chainlink’s LINK to Experience Significant Correction
A respected analyst is issuing a warning regarding the potential for Chainlink’s native asset, LINK, to undergo a substantial correction. Credible, a pseudonymous strategist with a strong following, believes that the decentralized oracle network’s token has likely reached a mid-cycle peak. As a result, Credible anticipates a deep corrective move for LINK, considering the substantial rallies it has experienced in recent months.
Credible emphasizes that such a correction would be expected and healthy, given the significant price increase of four times its value in just ten months. The analyst even suggests that a pullback lasting two to three months, resulting in a 50-60% drawdown, would fall within the realms of normality. Credible maintains that anything deeper than this, but still above the initial impulsive move, would still be deemed as a higher low and therefore acceptable from a technical perspective.
The analyst supports these predictions using the Elliott Wave theory, which posits that a bullish asset tends to follow a five-wave rise before encountering a pullback. Based on the chart presented by Credible, it appears that LINK has completed its five-wave rally and is now poised for a correction towards the support level of $7.26. At present, LINK is valued at $16.49.
In addition to expressing concerns about LINK, Credible also holds bearish sentiments toward Polygon (MATIC), a scaling solution for the Ethereum network. The strategist predicts that MATIC will fall towards the support level of $0.585, emphasizing an anticipated downside of 20% or more. However, Credible acknowledges that there may still be a potential for the altcoin to experience a 5-8% upside before this downward trend materializes. Currently, MATIC is valued at $0.706.
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