Ali Martinez, a leading market expert, observes that Chainlink has undergone a constructive correction. The decentralized Oracle protocol currently trades at $15.35, marking a 5.04% decline. This dip indicates vulnerability following a prolonged growth phase.
Over the last 24 hours, LINK has experienced a 5.49% decline, now trading at $15.23. Despite a negative weekend performance, Chainlink continues its weekly expansion at a rate of 23.58%. Martinez’s analysis reveals a sell signal on the daily, three-day, and weekly Chainlink charts via the TD Sequential indicator.
Martinez asserts the potential for a retracement to $12.5, although he emphasizes that LINK isn’t in imminent danger.
“The TD Sequential signaled a sell on the $LINK daily, 3-day, and weekly charts, anticipating a retracement to $12.50,” Martinez stated.
Failing to maintain above this critical support area might extend losses to $10.50.
Critical Support and Potential Scenarios
Chainlink hasn’t tested the $10.5 mark since October 24. Although it’s probable that bulls will uphold the current level, a breach of the $12.5 support could trigger a more significant market sell-off. Analyst warns this could further press down Chainlink’s value, potentially leading to a retest of the $10.5 support area.
Despite these possibilities, Martinez remains cautiously optimistic that the current level will be defended by bullish investors, preventing further price declines.
Source: https://coinpedia.org/price-analysis/link-price-drop-on-horizon-chainlink-faces-potential-correction-analyst-warns/