A crypto analyst updates his view of Cardano (ADA), Polygon (MATIC), and Chainlink (LINK) against Bitcoin (BTC) as the altcoin market goes weak.
In a new video update, DataDash presents Nicholas Merten warns are 511,000 YouTube subscribers that many altcoin projects in the current cycle could see as much as a 95% correction from their all-time highs.
“We can take it back here, look at a slew of different plays here in the market, and you’ll see similar patterns here – altcoins are mostly correct. Even Ethereum in the last bear market in 2018 corrected more than 95% from its all-time highs. So there is no doubt that history could repeat itself.”
Looking at the Cardano smart contract platform against Bitcoin, Merten warns of a potential 50% drop on the ADA/BTC chart from the current price level of around 0.00001000 BTC ($0.259) to around 0.00000450 BTC ($0.12) ).
“If stablecoin liquidity is not there and if there is no optimism and regulatory concerns mount, ADA will not move higher…
We have to wonder if we can hold this line of higher lows against Bitcoin or not. And if we can’t… I think you’re looking at 500 Sats (Satoshis) to about 450 for the next level. That is more than 50% here compared to where we are now.”
Next, Merten says Layer-2 scaling solution Polygon could collapse by as much as 90% against Bitcoin from its all-time high.
“If the liquidity isn’t there, we’ll probably go back to the historical line of previous support, which means we’ll probably correct sooner than 70% to about 78% to about 1,450 Satoshis here. Not a good look here for MATIC.
And if it can’t hold that line… it could potentially go down here towards 1,000 Sats. That’s where you start to get into the traditional 85% to 90% corrective territory.”
Polygon is worth $0.00002250 BTC ($0.58) at the time of writing, down 4.9% in the past 24 hours.
Finally, Merten predicts that the decentralized oracle service Chainlink is on track for a 90% drop against Bitcoin from its all-time high.
“[Chainlink] peaked in August 2020 and has been bleeding against Bitcoin ever since. Now, during the bull market, the dollar value may have increased to some extent, but it underperformed Bitcoin massively and has continued to do so. If this continues to fall to say 1,700 [Sats] this will have been a 90% drop from the peak against Bitcoin.”
Chainlink is trading at $0.000203 BTC ($5.25) at the time of writing, down 3% over the past 24 hours.
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