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.
Risk Disclaimer
Although Sponsored Trading can be profitable, it is associated with a significant risk of losing your investment. The risks will increase when trading on margin companies. Traders must exercise due diligence and be careful when making their trading decisions. It is the sole responsibility of the Trader to learn and acquire the knowledge and experience required to use the Trading Platform and anything that will be required to trade properly.
