A widely followed crypto strategist and trader warns Ethereum (ETH), Polkadot (DOT) and Chainlink (LINK) are likely not yet done correcting.
Analyst Justin Bennett tells his 101,300 Twitter followers Ethereum may be trading within a descending channel, suggesting further downside for the leading smart contract platform.
“Fakeouts to one side of a pattern usually trigger extended moves in the opposite direction. ETH is a perfect example. Fakeout above $1,200 on the 15th and breakdown today. $900 and $780 are support. Ethereum probably visits the latter.”
At time of writing, Ethereum is changing hands for $1,123, up 3.15% in the past day.
Next up is Polkadot, a protocol aiming to connect multiple blockchains into one unified network. According to Bennett, DOT may have broken down from a symmetrical triangle pattern and could be en route to his bearish target at $5.
“DOT is coming into resistance in the $7 range.
The measured objective from the recent triangle is $5, which hasn’t been met yet.”
At time of writing, DOT is valued at $7.83, an increase of over 6% in the last 24 hours.
The last coin on the trader’s radar is decentralized oracle network Chainlink, which Bennett says appears poised for a fresh leg down after breaching its diagonal support on the lower timeframes.
“LINK is well on its way to $4.60.”
At time of writing, LINK is trading at $6.98, a surge of over 7% in the last day.