The rise in the price of Bitcoin was short-lived, and at the time of writing, the king of cryptocurrencies is hovering near $25,500. While investors are still hesitant, we may see deeper losses in many altcoins. Crypto analyst Ali Martinez discussed one of these altcoins in his recent market analysis.
Crypto trader Ali Martinez shared his thoughts on Chainlink, a blockchain oracle services provider, on X platform today. The renowned investor stated that Chainlink (LINK) could drop up to 50% from its current price.
“Chainlink: Unlike the June correction where whale transactions and assets increased as prices dropped, this time we see a decrease in whale transactions and assets remaining stable. This is not good at all! If LINK drops below the $5 support level, it could experience a correction down to $4 or even $3.”
According to the chart, whale transactions worth at least $1 million in Chainlink have reached nearly 20 on a daily basis since May 19. In the last days of August, transactions dropped below 10 and almost hit zero on August 31.
Considering the possible new all-time low levels of altcoins, a potential decline in LINK Coin would not be surprising. However, if the BTC price drops, it could open the door to major sell-offs across the market. Expert crypto commentator Ali Martinez warns of a 10% drop for BTC, highlighting a critical support level.
“Bitcoin: On-chain data shows that BTC does not have support below $25,400. There is no strong support level where the price could hold up to $23,340, and we could see a 10% loss.”
At the time of writing, the BTC price was hovering near the support zone highlighted by Martinez. Many experts, including Rekt Capital, have mentioned the possibility of further selling down to $23,500 and $22,000. This was also discussed when the BTC price crossed $28,000.
Finally, the analyst warned that Optimism, one of the layer2 solutions for Ethereum (ETH), is trading in a bear flag formation. If the current formation plays out correctly, we may see a sharp drop in the price of OP Token down to $0.71.