Chainlink Rally Shows Signs of Strain as Token Faces Rejection
Chainlink's impressive 95% price surge from its June low is showing signs of strain, according to analyst Ali Charts. The token, which rose from around $7 to a high of $13.77, has been rejected near the $13.50 to $13.70 zone, leading to profit-taking and pushing the price back toward $12.60.
The weekly TD Sequential indicator has printed a sell setup following the token's sharp advance, indicating that the trend may be becoming exhausted. Additionally, large-holder activity is drying up, with transactions worth more than $1 million collapsing from 59 during the prior two weeks to roughly 10.
Exchange balances are also a concern, with around 1.75 million LINK moved onto trading venues, lifting total exchange holdings from about 269.25 million to 271 million tokens. This represents close to $23 million in LINK at current prices, and could indicate selling pressure.