Crypto analyst Nicholas Merten is looking at what’s in store for Chainlink (LINK) after its astronomic bull run that saw the coin rise 1,015% this year.
In a new DataDash overview, Merten says he’s happy to see LINK do so well given his past predictions for the asset’s success. He does, however, suggest LINK investors to start thinking about taking profits.
“It’s beautiful to see Chainlink starting to take on this vertical price action. Again, I’ve emphasized the point here that as much as I don’t want to fight the trend here – I’m not trying to short this – if you hold some LINK, I wouldn’t say to just sell it all or anything like that, but start raising a stop in this case on some of your position. Take a partial share. Consider here that we might start to get a little bit of a pullback here.”
Chainlink plummeted 15% on Monday, and Merten says it’s no surprise traders are beginning to pocket some of their big returns.
“Bear in mind that there are going to be a lot of investors and traders who are probably going to be locking in profits here. A little bit of smart money taking profits. And then we’re probably going to get a nice little pullback here. And that’s the same with BAND Protocol, it’s the same with RLC.
Again, not trying to rag on LINK here, it’s just knowing in this case what parts of the crypto sector have room to grow or might be overextended. And I have to say that LINK and other players kind of fit into the latter now. It looks like they’re ready for a cooldown after having a couple of weeks of near vertical price action.”
LINK started the year trading at $1.78 and it skyrocketed as high as $19.85 on August 16th – representing an increase of over 1,015%.
The decentralized oracle network is trading at $16.45 at time of writing, according to CoinMarketCap.