LINK Overdue for a Correction as Sell Signals Emerge: Analyst

Cryptocurrency trader and analyst Ali on X warned that Chainlink (LINK) may undergo a correction soon. In the post published earlier today, the analyst revealed that the TD Sequential indicator for LINK has presented a sell signal on the altcoin’s daily, 3-day, and weekly charts.

It looks like #Chainlink is bound for a correction!

The TD Sequential presented a sell signal on $LINK daily, 3-day, and weekly charts, anticipating a retracement toward $12.50. Failing to hold above this critical support area could extend the losses to $10.50.

Looking to buy… pic.twitter.com/jzk92ZFu25

— Ali (@ali_charts) November 13, 2023

The analyst also added that he anticipates a correction to $12.50 for LINK in the short term. Should it fail to remain above this key support mark, the altcoin’s price stands the risk of correcting down to $10.50, according to Ali.

LINK’s price seems to have already pulled back as CoinMarketCap data indicated that the cryptocurrency’s price dropped more than 5% over the past 24 hours of trading. Consequently, LINK’s price stood at $15.29 at press time.

Despite the negative daily performance, LINK was still well in the green on the weekly time frame. CoinMarketCap data indicated that the cryptocurrency was up more than 22% over the past 7 days. Notably, the monthly performance for LINK also propelled past 100% to 113%.

Daily chart for LINK/USDT (Source: TradingView)

From a technical standpoint, LINK was able to break above the $14.285 barrier over the past few days. However, the altcoin’s price may now be at risk of breaking below this key mark within the next 24-48 hours. Should this bearish thesis be validated, LINK may fall to $13.325 in the following few days.

In an extremely bearish scenario, LINK may break below $13.325 and fall to as low as $11.785 in the short term. This bearish thesis may, however, be invalidated if the altcoin is able to remain above $14.825 throughout the next 72 hours. In this more bullish scenario, LINK could rebound from the $14.825 level and enter into another leg up.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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