These 2 Altcoins Could Drop More!

According to market analyst Ali Martinez, the popular altcoin Chainlink and AAVE are likely to drop further until they reach stable support.

• Chainlink has seen its price drop more than 28% since November 10.
• AAVE also fell over 24% over the same period.
• These cryptocurrencies could go further before meeting stable support, according to the analyst.

Popular altcoin Chainlink and AAVE have dropped more than 24% in the past seven days as the cryptocurrency market is going through a period of increasing profits. Technical patterns suggest more losses on the horizon before the uptrend resumes.

Ali Martinez: Popular altcoin Chainlink is approaching rebound zone

Chainlink saw its market cap drop more than 28% last week, with one support level preventing further losses. The Tom DeMark (TD) Sequential indicator gave a sell signal on LINK’s 3-day chart for November 12. The bearish pattern developed as a green nine candlestick predicting a 3-day candlestick retracement. The pessimistic outlook seems confirmed as LINK dropped to the 100-three-day moving average at $29.

If this critical support level continues to hold, prices could rise to $70, according to Ali Martinez. However, losing the 100-three-day moving average as support could see Chainlink testing the 50-three-day moving average at $25, providing a better opportunity for marginal investors to bounce back into the market, according to Ali Martinez. Since then, every time LINK has fallen to the lower boundary of this technical formation, the downtrend has been exhausted and prices have bounced to the upper boundary of the formation.

From this point on, according to Ali Martinez, LINK tends to be rejected, which is consistent with the characteristics of a parallel channel. Now that Chainlink appears to be approaching the lower trendline of the channel, the uptrend seems to be continuing. Similar price action over the past three years showed LINK rising towards the middle or upper trendline of the channel after reaching $25. These resistance areas are $70 and $200 respectively, according to Ali Martinez.

Ali Martinez: AAVE can break these levels with a steep correction!

According to Ali Martinez, the popular altcoin AAVE looks set to make a big price move. The 50th largest cryptocurrency by market cap has endured a ten-month period of recession and made a series of lower and higher bottoms. This price behavior has resulted in the formation of a symmetrical triangle on the 3-day chart. The 24% correction made by AAVE last week was due to the triangle being rejected by the descending trendline. The pullback could extend until prices reach the pattern’s ascending trendline at $245, according to Ali Martinez.

As the popular altcoin approaches the apex of the triangle, it signals that more significant bullish volatility is imminent, according to Ali Martinez. A break of the $350 resistance could see AAVE gain more than 82% towards $635, according to Ali Martinez. Still, traders should hold the ascending trendline of the triangle at $245 as support to confirm the optimistic outlook. Failure to do so could result in a steeper correction towards $168 or even $91, according to Ali Martinez.

Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!