Crypto analyst Ali Martinez has issued a significant bearish warning for the popular altcoin Chainlink (LINK). Drawing attention to technical analysis data, Martinez suggested that LINK’s price could experience a correction of approximately 30%.
According to Martinez’s analysis, a head and shoulders (H&S) pattern, considered a bearish signal in technical analysis, is forming on Chainlink’s 4-hour price chart. The analyst stated that if this pattern is completed, significant selling pressure could be seen in the LINK price.
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Martinez emphasized that the most critical level for investors to watch at this point is $12, stating that sustained closes below this support level could confirm the bearish formation.
According to the analyst, in such a scenario, the LINK price could initially fall to the $10 level. Martinez noted that there might be some sideways price movement and consolidation in this region, after which selling pressure could strengthen again.
Martinez explained that the main target of the head and shoulders formation is $8.50. Reaching this target would mean a loss of approximately 30% from the critical support level of $12.
However, for this bearish scenario to materialize, the $12 support level needs to be permanently lost.
*This is not investment advice.
Continue Reading: Expert Analyst Warns About a Major Altcoin: “A Major Correction May Be on the Horizon”