Chainlink's Strong Rise Triggers Warning Signs
Crypto analyst Ali Martinez has issued a warning about Chainlink (LINK), citing three key risk signals that could lead to a short-term price slowdown. According to Martinez, technical indicators have generated a sell signal on LINK's weekly chart after its recent surge from approximately $7 to $13.77, a gain of around 95 percent.
The TD Sequential indicator, which is used to identify potential trend reversals, has triggered a sell signal, suggesting that users may be taking profits following the strong price rise.
In addition to the technical indicators, Martinez noted a decline in trading activity by large investors. The number of large LINK trades worth over $1 million dropped from approximately 59 to around 10 in the last two weeks, indicating a significant decrease in participation from these key players.
The third risk signal was an influx of LINK supply to exchanges, with approximately 1.75 million tokens deposited into exchanges, increasing the total balance on exchanges from 269.25 million to 271 million. This increase is interpreted as a sign that some investors may be preparing to sell.