- LINK Price Could See a 55% Drop After Months of Gains, Analyst Warns
- Correction Seen as Natural and Healthy Following Bullish Run
Crypto investors holding Chainlink (LINK) should brace themselves for a possible price correction, according to a popular analyst. Credible, a pseudonymous analyst with a large following on social media platform X, has issued a warning that the coin could be on the verge of a significant decline.
Credible points point to impressive gains over the past few months, suggesting a correction is a natural consequence of such a strong rally. “After 10 months of only going up and a 4x rise, a pullback lasting 2-3 months with a 50-60% drawdown is normal, natural, and healthy,” stated Credible. This perspective aligns with the Elliott Wave theory, a technical analysis framework that proposes a five-wave uptrend followed by a corrective wave. Credible’s analysis suggests coin might be nearing the end of its bullish phase and poised for a drop toward the $7.26 support level.
The analyst’s bearish sentiment extends beyond the coin. Credible also predicts a decline for Polygon (MATIC), a prominent Ethereum scaling solution. Credible anticipates MATIC falling to a support level of $0.585, a significant drop from its current price.
It’s important to note that Credible’s predictions are based on technical analysis and not financial advice. Investors should conduct their research and consider market conditions before making any investment decisions. The cryptocurrency market remains volatile, and corrections are a common occurrence. While a 55% drop might seem drastic, it’s crucial to remember that the coin has experienced significant growth in recent months. A healthy correction could pave the way for future price increases.
