Analyst Issues Chainlink Warning, Says 55% Correction for LINK Natural and Healthy Following 4X Rise

A widely followed crypto strategist is warning that Chainlink (LINK) may be on the verge of a massive correction.

Pseudonymous analyst Credible tells his 394,500 followers on the social media platform X that the native asset of the leading decentralized oracle network appears to have printed a mid-cycle top.

According to the analyst, a deep corrective move is now in the cards for LINK after witnessing massive rallies in the last few months.

“I understand that after 10 months of up only and a 4x rally, a pullback lasting 2-3 months with a 50-60% drawdown is normal, natural and healthy.

Further, anything deeper than that but above the origin of the impulsive move is a higher low and technically totally fine.” 

The trader uses the Elliott Wave theory, which states that a bullish asset tends to witness a five-wave rise before pulling back. Looking at the trader’s chart, he seems to suggest that LINK has completed its five-wave rally and is now poised for a correction toward support at $7.26.

At time of writing, LINK is worth $16.49.

Credible is also bearish on Ethereum (ETH) scaling solution Polygon (MATIC), predicting that the altcoin will fall to support at $0.585.

“Hello MATIC my old friend, it’s time to short you once again.

Up to 5-8% more potential upside, looking for 20% downside at minimum.” 

At time of writing, MATIC is worth $0.706.

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