Chainlink Price May Be Due for Correction, Analyst Warns

Crypto analyst Ali Martinez has sounded the alarm on Chainlink (LINK), citing three key risk signals that could lead to a short-term price slowdown.

The first warning sign is the TD Sequential indicator on Chainlink's weekly chart, which recently generated a sell signal after the LINK price surged 95% from $7 to $13.77.

Additionally, Martinez notes that large investor participation has decreased significantly, with the number of trades worth over $1 million dropping from 59 to just 10 in two weeks.

The third risk signal is the influx of LINK supply into exchanges, with approximately 1.75 million tokens being deposited, increasing exchange balances by nearly 1%.