Bitcoin, Ethereum and other major cryptocurrencies traded in red as the global cryptocurrency market cap has declined by four percent in the last 24 hours and it currently sits at $929 Billion. Two of the top cryptocurrencies BTC and ETH saw some strength on Tuesday before hitting reverse.
Ethereum (ETH), Polkadot (DOT), and Chainlink (LINK), according to a well-known cryptocurrency strategist and trader, are probably not yet finished correcting. According to analyst Justin Bennett, the main smart contract platform Ethereum may be trading within a declining channel, indicating a further decline.
He said that extended movements in the opposite way are typically started by fakeouts to one side of a pattern. The best illustration is ETH. Breakdown today after a fakeout above $1,200 on April 15. Support comes from $900 and $780. Ethereum most likely travels to the latter.
At the time of writing, ETH is trading at $1,080 and has declined by more than six percent in the last 24 hours.
Polkadot is the following protocol, which aims to link various blockchains into a single, cohesive network. Bennett believes that DOT might have broken down from a symmetrical triangular formation and is moving toward his $5 bearish goal.
“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 the time of writing DOT is trading at $7.46 and has declined by more than eight percent in the last 24 hours.
The last coin on the trader’s radar is decentralized oracle network Chainlink, which Bennett thinks is primed for a second leg down after breaching its diagonal support on the lower timeframes. According to him, LINK is on its way to $4.60
At the time of writing, LINK has declined by more than nine percent and is trading at $6.68.