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.
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