Crypto analyst and trader Ali Martinez is adopting a bearish stance on a prominent altcoin as he shares his insights regarding Bitcoin (BTC) and the native token of the blockchain oracle Chainlink (LINK).
Martinez informs his 134,800 followers on the social media platform X that the payment altcoin XRP (XRP) might decline by approximately 37% from its current price after establishing a head-and-shoulders pattern on the daily chart.
A head-and-shoulders pattern is a bearish formation indicating that an asset is losing bullish momentum after failing to achieve new highs with its right shoulder.
At the time of writing, XRP, the fourth-largest cryptocurrency by market capitalization, is trading at $2.05.
Regarding Bitcoin, the analyst states that it could shift to a bullish trend if the leading cryptocurrency successfully retests a crucial price level as support. Specifically, Martinez is closely monitoring BTC’s short-term holder (STH) realized price, a measure that assesses the average price at which all STHs purchased their coins.
STHs are categorized as wallets that have held their coins for 155 days or less.
“The initial indication that Bitcoin is poised to resume its bullish trajectory is reclaiming the short-term holder realized price at $90,570!”
Currently, Bitcoin is trading at $83,300.
The crypto analyst also mentions that there are “signs of profit-taking” in the Bitcoin market as older coins are being deposited back to crypto exchanges. Referencing data from the blockchain analytics platform CryptoQuant, Martinez notes that long-term holders moved over 1,058 BTC, valued at slightly more than $88 million at current prices, in just a single day.
Long-term holders are classified as entities that have not moved their coins for more than 155 days.
Shifting focus to Chainlink, Martinez cautions that LINK may turn bearish as it approaches an ascending trendline on the weekly chart that has supported the altcoin’s bullish movement since July 2023.
Chainlink is currently priced at $12.63.
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