Chainlink Price May Be Due for a Correction Amid Warning Signs
Crypto analyst Ali Martinez has identified three key risk signals for Chainlink (LINK), which has experienced a significant surge in recent times. According to Martinez's data, the first warning came when the TD Sequential indicator on LINK's weekly chart generated a sell signal after its price surged from approximately $7 to $13.77, gaining about 95 percent.
The strong rise could increase the risk of users taking profits, as noted by Martinez.
Additionally, there has been a decline in trading activity by large investors, with the number of LINK trades worth over $1 million dropping from approximately 59 to around 10 in the last two weeks. This indicates a significant decrease in the participation of large investors in the market.
The third risk signal was the influx of LINK supply to exchanges, with approximately 1.75 million tokens deposited into exchanges, increasing the total LINK balance on exchanges from 269.25 million to approximately 271 million. This increase in exchange balances is interpreted as a sign that some investors may be preparing to sell.