Chainlink’s 95% Surge Triggers Bearish Signal, Raising Profit-Taking Risk

Chainlink (LINK) is showing signs of weakening momentum after a sharp rally pushed the token nearly 95% higher from around $7 to a recent high of $13.77.

While the move has delivered significant gains to investors, on-chain analyst Ali Martinez has identified several indicators that could increase the risk of a near-term pullback.

The pundit pointed to a sell signal from the TD Sequential indicator on Chainlink’s weekly chart, which emerged after LINK’s substantial advance, suggesting the token could enter a period of consolidation or face renewed selling pressure if demand begins to fade.

Meanwhile, the technical warning comes alongside a notable decline in activity among large LINK holders. Martinez reported that transactions worth more than $1 million dropped from approximately 59 over a two-week period to about 10.

The sharp drop in high-value transactions suggests whale participation has cooled as LINK approaches its recent peak. Although lower whale activity does not necessarily mean large holders are selling, reduced participation from major market players could make it harder for the rally to maintain its pace without stronger demand.

Additionally, exchange balances add another reason for caution. According to the analyst, approximately 1.75 million LINK recently moved to exchanges, pushing the amount held on trading platforms from roughly 269.25 million to around 271 million tokens.

LINK has already pulled back from its recent high. However, the token remains up more than 5% over the past week, highlighting the strength of its recent price move.

Still, the mixed signals haven’t stopped some analysts from maintaining a bullish long-term view.

Analyst Michaël van de Poppe has suggested that Chainlink is among the cryptocurrencies with the potential to turn a $10,000 investment into $100,000 by 2029, reflecting his expectation that LINK could deliver significant gains over the coming years.

Elsewhere, crypto analyst Crypto Patel has also maintained a bullish stance after LINK climbed roughly 90% from a stated $7 entry. He highlighted LINK’s close above the $10.87 higher-timeframe level and said holding above that area would support targets of $50 and $100.

At press time, LINK was trading at $11.43, up 1.54% over the past 24 hours.