LINK Paints Macro Selling Signal After $15 Price Rally

LINK paints macro selling signal after the latest parabolic rally towards $15 as the asset is inching higher towards $18.00. In our latest Chainlink news crypto, the coin could be a subject to a strong reversal as the Tom Demark Sequential prints another reversal signal.

The indicator is a time-based indicator that prints 9 and 13 candles when an asset is poised to see a reversal in the trend. Chainlink saw a huge rally over the past few months and the leading cryptocurrency is now trading at $16.50, up by less than a percent in the past week. The cryptocurrency is trading below the all-time high at $20 while LINK got down by 17% since these highs but remains at a notable level during the bullish market pressures.

link price — Chart of Chainlink’s price action over the past two years with the Tom Demark Sequential indicator from a Telegram channel tracking the signal.

LINK could be subject to a strong reversal according to the notable indicator. The Tom Demark Sequential formed a selling 9 sign on Chainlink’s monthly chart while the indicator is printing 9 and 13 candles when the asset is an inflection point in the trend. The recent signal suggests a move to the downside that will soon be seen. This is the first TD indicator on the monthly charts which means there isn’t a precedent like this one as it was with the indicator on Ethereum’s weekly chart. Bitcoin could dictate the direction of where the altcoins will go from here.

link chart — Chart of LINK’s price action over the past few weeks with analysis by crypto trader Neko. Chart from TradingView.com

Analysts say that the altcoins underperform when Bitcoin is rallying as the capital is still focused mainly on Bitcoin. Mohit Sorout, the founding partner at Bitazu Capital 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.”

While LINK paints a macro selling signal, Bitcoin is undergoing a strong uptick in volatility that could stop the altcoins from rallying at least those that have a significant buying demand. LINK made a number of strong partnerships over the past few months that were responsible for spurring continuous buying.

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