3 Major Altcoins That May Plunge Further as Analyst Flags More Downside

Market Analysis

The cryptocurrency market took a major hit after a Monday fakeout rally, in which BTC and essentially all alts tried to break out but were halted in their tracks. Ali Martinez, though, believes the short-term future for three of the major alts is quite bleak, as he predicted more downside ahead.

LINK Analysis

The analyst began with Chainlink's LINK, suggesting the token appears to be breaking below the neckline of a head-and-shoulders pattern on its four-hour chart. Martinez noted that if the asset cannot reclaim the $13.56 resistance, the next downside target sits at $12.39, followed by $11.98 if selling continues. The landscape around LINK is particularly interesting, as it recently flew to almost $16, where profit-taking occurred. On-chain data showed that GSR has made two major token transfers to exchanges, possibly offloading over $8.2 million worth of the asset. Separately, Santiment outlined a discrepancy in LINK's 24% surge in a few weeks, as network activity and the creation of new wallets fell behind the actual price increase. Similar developments hint that the rally was not sustainable.

ADA Analysis

The second major altcoin on Martinez's list was Cardano's ADA. It skyrocketed by roughly 100% since its June lows and hit $0.28 in early October. However, it was rejected at the top of its ascending channel on the daily chart, which, according to the analyst, could lead to another leg down to the lower boundary at $0.21. As we reported recently, whale activity and social media interest picked up lately for the broader Cardano ecosystem as the underlying asset exploded to its multi-month peak.

SOL Analysis

Solana's SOL is the last altcoin Martinez warned about. It recently jumped past $120 and even challenged the $125 resistance before the bears stepped up and pushed it hard south to under $115 as of now. According to Martinez, if SOL closes below $117 on the four-hour chart, which it actually did, the next levels down would be at $114 (almost) and $111.

Broader Market Perspective

The altcoins are typically influenced by major BTC moves in either direction, and the latest correction is no exception. The market leader plunged yesterday by $2,000 in 20 minutes before it continued to slide lower, hitting a 17-day low earlier today. On the plus side, the TD Sequential, which predicted the leg down, is now flashing a buy signal on the hourly chart. For now, though, bitcoin remains below the key $83,000 support, which could spell further trouble if it fails to overcome it soon.