The crypto analyst Ali Martinez believes that Chainlink (LINK), an altcoin based on the Ethereum network, may experience a brief correction. Martinez refers to data from crypto analytics firm Santiment, showing that when LINK’s 30-day market value to realized value (MVRV) exceeds 19%, the asset has historically seen significant corrections. At present, LINK’s MVRV stands at 20%. However, Martinez still expects LINK to reach new highs after the correction. LINK is currently trading at $7.40.
In addition to analyzing LINK, Martinez also examines Bitcoin’s Relative Strength Index (RSI), a widely-used momentum indicator for determining overbought or oversold conditions. Martinez notes that each time the RSI on BTC’s 4-hour chart surpasses 74.21, the cryptocurrency tends to retrace. Recently, BTC’s RSI on the 4-hour chart reached 82.83. It is important to note that an RSI reading above 70 is typically considered bearish, while a reading below 30 is considered bullish. BTC is currently trading at $27,362.
Overall, Martinez’s analysis suggests that both LINK and BTC may experience temporary corrections, but he remains optimistic about their long-term prospects.
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