There’s a crypto strategist who is cautioning that Chainlink (LINK) could be heading for a significant downturn. Known as Credible, this anonymous analyst has shared his concerns with his 394,500 followers on the social media platform X. Credible believes that the native asset of the decentralized oracle network has reached a mid-cycle peak, indicating that a major correction may be on the horizon. After experiencing substantial rallies in recent months, Credible predicts that LINK will undergo a deep corrective move. He suggests that a pullback lasting 2-3 months with a drawdown of 50-60% is normal and healthy after a 10-month period of continuous growth and a 4x rally. However, Credible notes that anything deeper than this, but still above the origin of the impulsive move, would be considered a higher low and technically acceptable. The trader bases his analysis on the Elliott Wave theory, which proposes that a bullish asset typically experiences a five-wave rise before retracing. Looking at Credible’s chart, it appears that LINK has completed its five-wave rally and is now poised for a correction towards support at $7.26. As of now, LINK is valued at $16.49. Credible also holds a bearish outlook on Ethereum (ETH) scaling solution Polygon (MATIC), forecasting that the altcoin will decline to support at $0.585. He anticipates a potential upside of 5-8% before a minimum downside of 20%. Currently, MATIC is priced at $0.706.
