Crypto Analyst Sounds Warning Alarm For Potential 50-60% Crash In Chainlink Price, Here’s Why
May 20 2024 - 2:00PM
NEWSBTC
Crypto analyst CrediBULL Crypto recently warned that Chainlink
(LINK) could experience a 50% to 60% drop in its price. However,
based on his explanation, LINK holders may not have cause to worry
as such a price drop is part of the crypto token’s growth. Why
Chainlink Will Experience A Price Drop CrediBULL Crypto explained
in an X (formerly Twitter) post that a “50-60% drawdown is normal,
natural, and healthy” given that Chainlink has experienced ten
months of up only and a 4x rally.” The analyst expects this price
drawdown to last about two to three months and suggested that
Chainlink could see brief price surges, but that doesn’t invalidate
the current bearish trend. Related Reading: Crypto
Analysts Reveal Sub-$1 Altcoins Set To Outperform In The Bull Run
In a video posted on his YouTube channel, CrediBULL Crypto further
explained why he is so confident in shorting Chainlink. He alluded
to the rise in the crypto token’s open interest and claimed that
many levered players entered Chainlink on the pump to a major
resistance level. He expects that those investors who opened longs
will likely begin to close their positions as soon as Bitcoin
experiences a pullback and the crypto market starts bleeding
again. The crypto analyst added that these investors will
capitulate at the lows, which will bring Chainlink’s price to the
range lows. CrediBULL Crypto claimed that this move will bring LINK
back down to $11.96, about a 30% drop from its current price
levels. Based on this, he revealed that he will be looking to short
Chainlink around $16, which is the likely level for
rejection. Same Expectations For Meme Coins CrediBULL Crypto
also expects meme coins to experience a significant price drawdown,
given the parabolic rally they have enjoyed since the beginning of
the year. Meme coins Dogwifhat (WIF) and Pepe (PEPE) have been the
most significant year-to-date (YTD) gainers among the top 50 crypto
tokens, with price gains of over 1,400% and 500%,
respectively. The crypto analyst warned that some major meme
coins have already seen their tops and will likely experience
significant declines. In the YouTube video he posted, he also gave
insights into how low Dogecoin, WIF, and Pepe could drop.
Related Reading: Crypto Expert Willy Woo Predicts Bitcoin Has Room
To Run – Here Are The Drivers For Dogecoin, he predicts that the
foremost meme coin could drop to as low as $0.10. However,
CrediBULL Crypto noted that he can’t short Dogecoin yet because he
expects a relief pump to $0.18, the range he is looking to open a
short position. Meanwhile, he predicts that WIF could drop to
as low as $1.6, revealing that he will be looking to short it at
$3.90 because he expects the meme coin to enjoy one last push to
the upside before dropping to the downside. CrediBULL also predicts
a significant price decline for PEPE. He claims the meme coin could
experience a drawdown of as much as 60% since it recently hit a new
all-time high (ATH). Featured image created using Dall.E, chart
from Tradingview.com
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