A Crypto Analyst Identifies Bearish Signal in Ethereum-Based Altcoin
A crypto analyst has identified a potential bearish signal in one Ethereum-based altcoin. According to Ali Martinez, the native asset of the decentralized oracle network Chainlink (LINK) could be due for a brief correction. Martinez points to data from crypto analytics firm Santiment, which shows that LINK’s 30-day market value to realized value (MVRV) has surpassed 19% in the past. On both occasions, the altcoin experienced significant corrections. Currently, LINK’s MVRV stands at 20%. MVRV is a metric used by traders to detect overbought or oversold conditions.
Potential for Higher Highs
Despite the bearish signal, Martinez believes that LINK will still achieve higher highs after a short correction. The altcoin is currently trading at $7.40.
Bitcoin RSI Indicates Potential Retracement
Martinez also examines Bitcoin’s Relative Strength Index (RSI), a momentum indicator used to determine if an asset is overbought or oversold. He notes that whenever the RSI on Bitcoin’s 4-hour chart reaches or exceeds 74.21, the cryptocurrency tends to retrace. Recently, the RSI on the 4-hour chart hit 82.83, indicating a potential retracement for Bitcoin. BTC is currently trading at $27,362.
Hot Take: Mixed Signals for Cryptocurrencies
The analysis by Ali Martinez reveals mixed signals for cryptocurrencies. While there are indications of a potential correction for Chainlink, there is also optimism for higher highs in the future. Additionally, Bitcoin’s RSI suggests a possible retracement. These factors highlight the volatility and uncertainty in the cryptocurrency market, emphasizing the need for careful analysis and decision-making for crypto traders and investors.
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