Chainlink Warns of Potential Correction Amid Weakening Momentum
Chainlink's LINK token has experienced a significant rally of nearly 95% in recent times, but according to analyst Ali Charts, the digital asset is facing several warning signs that could indicate a potential pullback. The weekly TD Sequential signal has flashed a sell setup on LINK's chart, following a sharp advance from around $7 to its current price of $13.77.
The decline in whale transactions above $1 million is also a concern, as it fell from 59 to just 10 in the past two weeks. Additionally, 1.75 million LINK tokens have moved onto exchanges, resulting in an increase in exchange balances. This shift could be indicative of a cooling-off period for the asset after its recent surge.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) momentum indicators are also showing signs of weakening. The RSI is currently at 41.97, below its moving average, while the MACD has turned bearish. These technical signals suggest that LINK may be due for a correction.
Chainlink's price faces support around $12.50-$12.60 and resistance at $13.50-$13.70. The 50-day moving average is near $12.39, while the 200-day moving average is around $11.24 and continues to rise.