A closely followed on-chain analyst says crypto whales are heavily loading up on an altcoin running on the Ethereum (ETH) network.
Ali Martinez tells his 66,900 followers on the social media platform X that deep-pocketed investors accumulated tens of millions of dollars worth of the decentralized oracle Chainlink (LINK) in just seven days.
“Chainlink whales have snapped up over 6.2 million LINK this past week, totaling approximately $76.88 million!”
Last week, Martinez warned that Chainlink appears to have broken down from a head-and-shoulders reversal pattern after it took out support at $12.
Traders keep a close watch on charts flashing a head-and-shoulders pattern as it suggests that the asset is poised to witness downside price action.
With LINK trading slightly above $13, the trader now warns that the Ethereum-based altcoin may be in the process of flipping a previous support level into resistance.
“Be careful with Chainlink! The recent upswing to $13 could have been a retest of the head-and-shoulders pattern’s neckline.”
Looking at the trader’s chart, he seems to predict that LINK could nosedive to as low as $6.80, a potential decline of nearly 50% from current levels.
At time of writing, LINK is trading for $13.10, up over 6% in the past day.
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Generated Image: Midjourney
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