Chainlink (LINK) is a leading decentralized oracle network that enables smart contracts on Ethereum to access real-world data, APIs, and payment systems in a secure and reliable way. Chainlink has been one of the best performing cryptocurrencies in the past year, reaching an all-time high of $52.88 on May 10, 2021. However, since then, the price of LINK has been on a downtrend, as it struggled to stay above the $8 support level.

In this blog post, we will analyze the recent price movements of LINK and provide some possible scenarios for its future direction. We will use technical indicators such as the TD Sequential, the RSI, and the support and resistance levels to identify the key factors that may influence the price of LINK.

The TD Sequential indicator is a tool that helps traders identify potential trend reversals and exhaustion points based on a series of numbers and letters. A sell signal is generated when a green 9 candle is followed by a red 1 candle, indicating that the bullish momentum is fading and a bearish reversal is likely. A buy signal is generated when a red 9 candle is followed by a green 1 candle, indicating that the bearish momentum is fading and a bullish reversal is likely.

On April 19, 2023, a crypto trader named Ali (@ali_charts) tweeted that the TD Sequential indicator had flashed a sell signal for LINK on its daily chart. He also forecasted that a correction in LINK’s price could happen in the next few days, and that the correction could see LINK’s price drop to $8.10 or even $7.60.

His prediction was accurate, as LINK plunged to $7.5 on April 20, 2023, breaking below the $8 support level that had held for several days. The price then bounced back to $8.12 on April 23, 2023, as Coinbase reported that Chainlink was one of the top gainers this week with a 9.74% increase in the past seven days.

However, the bounce was short-lived, as LINK faced rejection at the $8.5 resistance level and fell back to $7.9 on April 24, 2023. The RSI indicator on the four-hour chart shows that LINK is currently oversold, meaning that the sellers are exhausted and a possible price reversal may occur soon.

The next support level for LINK is at $7.47, which was tested on April 20, 2023. If this level is breached, LINK may decline further to $7 or even $6.5. On the upside, if LINK can reclaim the $8 level and break above the $8.5 resistance level, it may initiate a new uptrend towards $9 or higher.

In conclusion, Chainlink (LINK) is facing a bearish pressure in the past few days, as it failed to sustain above the $8 level. The TD Sequential indicator gave a sell signal for LINK on its daily chart on April 19, 2023, which was followed by a sharp drop to $7.5 on April 20, 2023. The price then recovered to $8.12 on April 23, 2023, but faced rejection at the $8.5 resistance level and slid back to $7.9 on April 24, 2023. The RSI indicator on the four-hour chart indicates that LINK is oversold and may reverse soon. The next support level for LINK is at $7.47, while the next resistance level is at $8.5.