Three warning signals for Chainlink price at $13.32

The Chainlink price is at $13.3 after rising 95% from the low of around $7, but analyst alicharts sees three signals pointing to a possible correction. The TD Sequential indicator is giving a sell signal on the weekly chart, large transactions are declining sharply, and more LINK is being sent to exchanges, which could indicate selling pressure.

Chainlink is available at OKX and Bybit.

In summary:

• TD Sequential gives a sell signal on Chainlink’s weekly chart after a 95% rally
• Large transactions of more than $1 million fell from around 59 to about 10
• The LINK balance on exchanges rose by 1.75 million to approximately 271 million LINK

Sell signal after strong advance

Chainlink rose over the past few weeks from around $7 to a recent peak of $13.77, a gain of 95%. It is precisely at that level that a sell signal from the TD Sequential indicator now appears on the weekly chart.

Technically, the signal suggests the upward movement could come under pressure and that profit-taking may be imminent. The current price of $13.3 is slightly below that recent peak.

Whale activity drops sharply

In addition to the technical signal, the analyst also sees a sharp decline in whale activity. Large transactions of more than $1 million fell from around 59 to about 10 over the past two weeks, according to data from Santiment.

Such a decline could mean that large market players are buying less actively, which makes the price vulnerable if demand from smaller buyers also weakens.

More LINK flowing to exchanges

The third signal concerns the increase in LINK on exchanges. Between 2 and 6 September, the total balance on exchanges rose from approximately 269.25 million to about 271 million LINK, an increase of 1.75 million tokens.

When holders send their tokens to an exchange, they usually do so to sell. A rising exchange balance is therefore seen as a potential sell signal, although this does not necessarily have to lead to a price decline.