A well-known cryptocurrency strategist is cautioning that Chainlink (LINK) could be on the cusp of a significant correction. Credible, an anonymous analyst with a large following on the social media platform X, believes that the native asset of the leading decentralized oracle network has reached a mid-cycle peak. After witnessing substantial rallies in recent months, Credible suggests that a deep corrective move is likely for LINK. He explains that it is normal and healthy for the asset to experience a pullback of 50-60% lasting 2-3 months, following a 10-month period of continual growth and a 4x rally. However, Credible adds that anything deeper than that, but above the origin of the initial upward movement, would be considered a higher low and technically acceptable.

Credible employs the Elliott Wave theory, which states that a bullish asset typically undergoes a five-wave ascent before retracing. His chart analysis implies that LINK has completed its five-wave rally and is now poised for a correction towards support at $7.26. As of now, LINK is valued at $16.49.

Credible also holds a bearish stance on Polygon (MATIC), an Ethereum (ETH) scaling solution, predicting that the altcoin will drop to support at $0.585. He expects to see a potential upside of 5-8% before a minimum 20% downside.

As of now, MATIC is valued at $0.706.

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