A closely tracked crypto trader says that Ethereum rival Terra (LUNA) might be following the same path that decentralized oracle Chainlink (LINK) took when it experienced its last big correction.
The pseudonymous analyst known as Capo tells his 248,000 Twitter followers that traders are overlooking some striking similarities in price action between LINK and LUNA.
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“LINK vs. LUNA
They have been performing very similar while the entire market was down. Expecting LUNA to go to the lows of the range ($40-45) after confirming the regular bearish divergence.”
At time of writing, Chainlink is currently priced just above $13.00, about 75% below its all-time high of $52, while Terra is trading for $89.01, 14% below its peak of $104.
According to Capo, smart contract platform Fantom (FTM) is also looking significantly vulnerable to more downside risk. He points out the massive rise in open interest (OI) as FTM trends down, suggesting that sentiment is generally very bearish as traders aggressively try to short sell the coin.
Something you don’t want to see during a bearish trend. This looks so bad to be honest.”
As for Bitcoin, the popular analyst is making a comparison between BTC’s price action now and during the big collapse of May 2021. According to Capo, Bitcoin’s relief rally in February and subsequent ranging price action is reminiscent of May last year right before BTC made another powerful move to the downside, ultimately going below $30,000.
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