Up until last week, Chainlink (LINK) was one of the best-performing cryptocurrencies in the market. The asset had rallied around 500% since the March lows.
After a slowdown in the altcoin market’s momentum, LINK has slumped. It is now down approximately 20% from its all-time high price set last week.
Analysts think that the asset is primed to move lower as the technical case remains in the hands of bears.
After an exponential rally, Chainlink is finally experiencing one of its first major pullbacks after last week’s major high near $9. As of the time of this article’s writing, the asset trades at $7.44, approximately 17% below that high.
While the asset’s holders have yet to capitulate, there remain technical indicators that suggest the asset is primed to slide lower in the weeks ahead.
Chart of Chainlink’s price action against the U.S. dollar over the past two weeks. Chart from TradingView.com
Analysts Agree That Chainlink Room To Fall
A Telegram channel that tracks the instances of the Tom Demark Sequential just noted that Chainlink just flashed a bullish sign. Against BTC, the cryptocurrency on its weekly chart just printed a “sell 9” candle according to the sequential.
This is important for traders as “9” candles, as per the TD Sequential, are often seen at an inflection or reversal point in an asset’s trend. That’s to say that this latest signal suggests the altcoin will see a strong correction against Bitcoin.
Chart of LINK’s macro price action (against Bitcoin) from a Telegram channel tracking the Tom Demark Sequential. Chart from TradingVIew.com
The expectations of a reversal in the LINK market against BTC have been echoed by Josh Olszewicz.
As reported by
