Crypto Analyst Says One Ethereum-Based Altcoin Flashing a Bearish Signal, Updates Outlook on Bitcoin

A crypto analyst thinks indications of a bearish signal are being displayed by one Ethereum (ETH)-based altcoin.

Ali Martinez tells his 30,800 followers on the social media platform X that the native asset of the decentralized oracle network Chainlink (LINK) could be primed for a brief correction.

Citing data from crypto analytics firm Santiment, Martinez points out that the last two times LINK’s 30-day market value to realized value (MVRV) passed 19%, the asset endured steep corrections. LINK’s MVRV recently hit 20%.

MVRV is the ratio of an asset’s current market cap divided by its realized capitalization – i.e. the value of all measured LINK at the price they were bought. MVRV 30-Day is a timebound metric that only analyzes that ratio among tokens that have moved at least once in the past 30 days. Traders use the metric to detect overbought or oversold conditions.

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Source: ali_charts/X

Martinez, however, believes that LINK will still hit higher highs after a brief correction. The 19th-ranked crypto asset by market cap is trading at $7.40 at time of writing.

The analyst also looks at Bitcoin (BTC), examining the top crypto asset’s Relative Strength Index (RSI), a widely used momentum indicator that aims to determine if an asset is overbought or oversold.

Says Martinez,

“Notice that each time the RSI on BTC 4-hour chart hits or surpasses 74.21, BTC tends to retrace. The RSI on the 4-hour chart recently hit 82.83!”

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Source: ali_charts/X

The RSI indicator scales from 0 to 100. A reading of below 30 is typically considered bullish while a reading of over 70 is typically considered to be a bearish sign.

BTC is trading at $27,362 at time of writing.

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