Crypto analyst Ali Martinez, also known as Ali Charts, has warned that Chainlink may be entering a short-term cooldown after a powerful rally. The analyst highlighted three warning signals that together suggest LINK could face a correction or sideways price action.
The first caution came from the TD Sequential indicator on Chainlink’s weekly chart, which generated a sell signal after LINK climbed roughly 95% from about $7 to a high of $13.77. Martinez noted the sharp advance could encourage profit-taking.
The second signal is a sharp drop in whale activity. Large LINK transactions worth more than $1 million declined from approximately 59 to around 10 over the last two weeks, indicating reduced participation from large investors.
The third warning involves exchange flows. Around 1.75 million LINK were deposited to exchanges, pushing total exchange balances from 269.25 million to roughly 271 million LINK. Rising exchange balances are often viewed as a sign that investors may be preparing to sell.
On the technical side, LINK was trading near $12.626 after being rejected around $13.50–$13.70. The RSI stood at 41.97, below its moving average of 43.69 but still above oversold territory, while the MACD turned bearish. Key support sits at $12.50–$12.60, then $12.00 and approximately $11.50. Resistance is seen at $13.00 and $13.50–$13.70. The 50-day moving average is near $12.39, and the 200-day moving average is around $11.24 and still rising, keeping price above the longer-term trend.
