- Chainlink is inching higher. It now trades for $17.50 as of this article’s writing.
- The coin may soon be subject to a strong reversal as the Tom Demark Sequential prints a reversal signal.
- The Sequential is a time-based indicator that prints “9” and “13” candles when an asset is poised to see a reversal in its trend.
Chainlink Forms Monthly Reversal Signal
Chainlink has seen a serious rally over the past few months. As of this article’s writing, the leading cryptocurrency trades for $16.50, up a handful of percent in the past week. The cryptocurrency is trading below its all-time high price at $20. LINK is down 17.5% since those highs, but remains at notable levels due to bullish market pressures.
LINK may be subject to a strong reversal, though, at least according to a notable indicator.
The Tom Demark Sequential recently formed a “sell 9” on Chainlink’s monthly chart. The indicator normally prints “9” and “13” candles when an asset is at an inflection point in its trend. This recent signal suggests a move to the downside will soon be seen.
This is Chainlink’s first Tom Demark Sequential on its monthly chart. That means there isn’t really precedent like there was with the indicator on Ethereum’s weekly chart.
Chart of Chainlink's price action over the past two years with the Tom Demark Sequential indicator from a Telegram channel tracking the signal. Chart from TradingView.com
All Eyes on Bitcoin
Bitcoin may dictate the directionality of altcoins moving forward.
Analysts say that altcoins underperform when Bitcoin is rallying, as capital and attention is focused on the leading cryptocurrency. Mohit Sorout, a founding partner at Bitazu Capital, recently commented:
“Most (altcoin) cycles in crypto are centered around bitcoin volatility. When it dries up, no one wants to trade btc which becomes evident from the volume as well. This leads to a large uptick in speculation on alts, driving their prices up – typically alts with strong narratives & large scale memetic behavior get the most volumes.”
Bitcoin undergoing a strong uptick in volatility here could stop altcoins from rallying, at least those without significant buying demand.
LINK has made a number of strong partnerships over recent weeks that could spur continued buying.
Featured Image from Shutterstock Price tags: linkusd, linkbtc Charts from TradingView.com Chainlink (LINK) Prints Macro Sell Signal After Parabolic Rally Above $15