Chainlink Faces Three Warning Signs After 95% Rally, Says Analyst

• LINK rallied 95% from $7 to $13.77, but the weekly TD Sequential now signals a potential sell setup.
• Whale transactions above $1M fell from about 59 to 10, while 1.75M LINK moved onto exchanges.
• LINK faces support at $12.50-$12.60, with $13.50-$13.70 resistance and weakening RSI and MACD momentum.

Chainlink is facing three warning signs after a 95% rally, according to analyst Ali Charts, as whale activity declines. LINK rose from nearly $7 to $13.77, while 1.75 million tokens moved onto exchanges. The latest market data shows LINK at $12.626 after rejection near $13.70, with momentum indicators turning weaker.

Ali Charts said the TD Sequential has flashed a sell signal on LINK’s weekly chart. The signal followed a 95% advance from about $7 to the recent $13.77 high. However, whale participation has also fallen sharply.

Transactions worth more than $1 million dropped from roughly 59 during the past two weeks to about 10 today. At the same time, 1.75 million LINK moved onto exchanges. Exchange balances increased from 269.25 million to roughly 271 million LINK. Ali Charts said the combined data points to a potential cooldown after LINK’s sharp advance.

The latest price data shows LINK trading at $12.626, with the latest candle ranging between $12.617 and $12.682. Earlier, LINK climbed from around $11 to $11.50 before reaching nearly $13.65-$13.70 during the Sept. 6-7 rally.

Trading volume increased during the move above $12. However, rejection near $13.50-$13.70 brought profit-taking and pushed LINK toward $12.60. The RSI is at 41.97, below its moving average at 43.69.

It remains above 30, which leaves LINK outside oversold territory. The MACD has also turned bearish. Its line is near -0.067, while the signal line is around -0.041.

LINK currently faces support around $12.50-$12.60, followed by $12.00 and roughly $11.50. On the upside, $13.00 represents the first level to reclaim. Above that, resistance is around $13.50-$13.70. A sustained move above $13.70 would open the next area higher, based on the provided technical levels.

Meanwhile, the 50-day moving average is near $12.39, while the 200-day moving average is around $11.24 and continues rising. The price remains above the longer-term average despite its latest pullback.