Chainlink price may soon be subject to a strong reversal as the Tom Demark Sequential prints a reversal signal
Chainlink price is inching up, currently trading at $ 15.97. 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.
The Chainlink price forms a monthly reversal signal
Chainlink has seen a severe rebound over the past few months. At press time, LINK is up slightly marginally 1%, trading below its all-time high of $ 20. LINK is down 17.5% since that high, but still at a noticeable level due to visual pressure price increases.
However, LINK can be strongly reversed, at least according to a significant indicator.
The Tom Demark Sequential recently formed a “sell 9” on Chainlink’s monthly chart. The indicator prints typically “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 is 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 | Source: TradingView
Analysts say that altcoins are underperforming as Bitcoin rises in price, as capital and attention are 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 experiences a sharp upswing here that could prevent altcoins from rising in price, at least those with no significant buying demand.
LINK has been working on some strong partnerships in recent weeks that could drive buying to continue.
You can see the LINK price here.
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