Crypto analyst Ali Martinez pointed out three key risk signals for Chainlink (LINK), which has recently experienced a strong surge. According to Martinez, technical indicators, weakening whale activity, and increased token inflows to exchanges raise the possibility of a short-term price slowdown for LINK.
According to the analyst’s data, the first warning came when the TD Sequential indicator on Chainlink’s weekly chart generated a sell signal. This signal appeared after the LINK price surged from approximately $7 to $13.77, gaining about 95 percent. Martinez noted that this strong rise could increase the risk of users taking profits.
The second notable development was the decline in trading activity by large investors. The number of large LINK trades worth over $1 million dropped from approximately 59 to around 10 in the last two weeks. Martinez stated that this decline indicates a significant decrease in the participation of large investors in the market.
The third risk signal was the influx of LINK supply to exchanges. According to the data, approximately 1.75 million LINK were deposited into exchanges, increasing the total LINK balance on exchanges from 269.25 million to approximately 271 million. This increase in exchange balances is interpreted as a sign that some investors may be preparing to sell.
Martinez said that when these three indicators are considered together, they point to the possibility of a short-term correction or a period of sideways price movement for Chainlink following its recent sharp rise.
