Chainlink's LINK is showing three warning signs following a 95% rally, according to analyst Ali Charts (X post), as whale activity declines. LINK, the token that powers Chainlink's decentralized oracle network used to feed off-chain data to smart contracts, climbed from nearly $7 to a recent high of $13.77, while 1.75 million tokens moved onto exchanges. The latest market data shows LINK trading at $12.626 after a rejection near $13.70, with momentum indicators turning weaker.

Whale Activity Drops as Exchange Deposits Rise

Ali Charts said the TD Sequential indicator has flashed a sell signal on LINK's weekly chart. The signal came after a 95% advance from about $7 to the recent $13.77 high. At the same time, whale participation has fallen sharply.

Transactions worth more than $1 million dropped from roughly 59 over the past two weeks to about 10 today. Separately, 1.75 million LINK moved onto exchanges, with exchange balances rising from 269.25 million to roughly 271 million LINK. In on-chain analysis, rising exchange inflows are commonly read as a sign that holders may be positioning tokens for sale, since assets held on exchanges are easier to liquidate quickly. According to Ali Charts, the combined data points to a potential cooldown after LINK's sharp advance.

LINK Pulls Back From September Rally

The latest price data shows LINK trading at $12.626, with the most recent candle ranging between $12.617 and $12.682. Earlier, LINK climbed from around $11 to $11.50 before reaching nearly $13.65-$13.70 during the Sept. 6-7 rally.

Trading volume increased as the price moved above $12. However, rejection in the $13.50-$13.70 zone triggered profit-taking and pushed LINK back toward $12.60.

Momentum indicators have weakened. The RSI stands at 41.97, below its moving average of 43.69, though it remains above 30, keeping LINK outside oversold territory. The MACD has also turned bearish, with its line near -0.067 and the signal line around -0.041.

Key Support and Resistance Levels

LINK currently faces support around $12.50-$12.60, followed by $12.00 and roughly $11.50. On the upside, $13.00 represents the first level to reclaim. Above that, resistance sits around $13.50-$13.70. A sustained move above $13.70 would open the next area higher, based on the provided technical levels.

Meanwhile, the 50-day moving average is near $12.39, while the 200-day moving average is around $11.24 and continues rising. Despite the recent pullback, the price remains above the longer-term average. For traders watching the setup, the levels to monitor are whether LINK holds the $12.00-$12.60 support zone and whether large-transaction counts and exchange inflows reverse, which would indicate whether the cooldown flagged by the analyst deepens or stabilizes.