Chainlink has staged a strong rally after the mid-August breakout. But its momentum may be cooling down.
A new analysis suggests that LINK’s latest price move is facing several signs of caution after it surged 95% from around $7 to a recent high of $13.77 in just two months.
Three Red Flags
Ali Martinez has flagged a sell signal from the TD Sequential on LINK’s weekly chart, which comes after the crypto asset’s sharp climb and raises the possibility of profit-taking. At the same time, activity from large holders has cooled noticeably. In fact, transactions worth more than $1 million have dropped from roughly 59 over the past two weeks to about 10 on September 7th.
Meanwhile, exchange deposits are adding to the concern, as Martinez found that 1.75 million LINK moved onto exchanges and the total exchange balance rose from 269.25 million to approximately 271 million units. The analyst explained that the combination of these developments could signal a cooldown after LINK’s strong advance.
So while short-term momentum is showing some strain, the broader setup remains constructive. The important development for LINK is that it has now closed above the $10.87 higher-timeframe level, which, according to Crypto Patel, keeps the bullish outlook intact as long as that level holds. With the asset trading above this mark, the current targets remain $50 and $100.
Michaël van de Poppe does not think that “LINK will stall much” and expects to see a strong continuation here towards the next area at $14.50-15 as a potential target zone.
Industry Developments
LINK is among the latest cryptocurrencies being added to Charles Schwab’s crypto trading service, alongside Solana and Avalanche. The expansion means eligible Schwab clients will soon have direct access to the token. The financial giant initially launched the service with Bitcoin and Ethereum in May.
Additionally, Wyoming is expanding its use of Chainlink to give near-real-time, on-chain visibility into the reserves backing its official Frontier Stable Token (FRNT). The state has adopted Chainlink Proof of Reserve after moving FRNT to CCIP in August, in a bid to make reserve verification more continuous by combining independent checks with automated on-chain monitoring.
The post 3 Red Flags Are Emerging for Chainlink After LINK’s Powerful 95% Rally appeared first on CryptoPotato.
Source: https://cryptopotato.com/3-red-flags-are-emerging-for-chainlink-after-links-powerful-95-rally/
