Chainlink (LINK) is taking a breather with what many may call a healthy correction. However, top market analyst Ali Martinez believes there is a likelihood of a steeper fall for LINK in the short term. The decentralized Oracle protocol has shed 5.04% of its price, now pegged at $15.35.
This slump shows Chainlink is not immune to a correction after a months-long period of surge. At the time of writing, Chainlink’s 24-hour trading volume is down by 34.58% to $789,720,779. Despite this gloomy performance carried over from the weekend, Chainlink is maintaining its outlook for the week where it has grown as much as 23.58%.
In the analyst’s analysis, the TD Sequential indicator presents a sell signal on both the daily, three-day, and Chainlink weekly charts. While LINK is not currently in the danger zone, Martinez believes a retracement to $12.5 cannot be ruled out. He went on to further note that should Chainlink bulls fail to secure this level, they can drag the price down toward the $10.5 support zone.
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
It is worth noting that Chainlink has not retested the $10.5 level since Oct. 24, and chances are bulls will defend the current level.
Banking on Chainlink staking advantage
For Chainlink, its on-chain metrics are not much of a focus for a community that wants a highly functional Oracle protocol.
To push this sentiment in the right direction, many LINK proponents are bound to start banking on what the Chainlink Staking v0.2 upgrade will usher in for the ecosystem shortly. With a phased rollout set to commence this month, Chainlink Staking v0.2 will present a more sustainable and inclusive channel for LINK holders to help secure the network and get a better reward for it.
Chainlink also has many other crucial innovations like the Cross-Chain Interoperability Protocol (CCIP), a tool now being integrated by the likes of Arbitrum. With these solutions, Chainlink has what it takes to sustain its growth and chart a quick rebound from its current level.
Read the full article here