Chainlink's Rapid Rally May Be Cooling Down Amid Red Flags
Chainlink (LINK) has experienced a significant price surge over the past two months, increasing by 95% from around $7 to a recent high of $13.77.
However, an analysis suggests that LINK's momentum may be cooling down due to several red flags emerging in its chart.
According to Ali Martinez, a sell signal has been triggered on LINK's weekly chart via the TD Sequential indicator, which could indicate profit-taking after the strong rally.
In addition, large holder activity has decreased, with transactions worth over $1 million dropping from 59 to 10 in just two weeks. Furthermore, exchange deposits have also increased, with 1.75 million LINK moved onto exchanges and a total exchange balance rise from 269.25 million to approximately 271 million units.
Despite these signs of caution, the broader setup for LINK remains constructive, and the asset has closed above the $10.87 higher-timeframe level, maintaining its bullish outlook according to Crypto Patel.
Michaël van de Poppe expects a strong continuation towards the next area at $14.50-15 as a potential target zone, but others are more cautious about LINK's price action.