Chainlink TD Sequential Suggests a Market Turning Point
The Chainlink TD Sequential indicator has printed a buy signal on the 4-hour chart, signaling potential trend exhaustion and a short-term reversal in the making. The signal appears after nine consecutive lower closes, reflecting weakening downward momentum around the $17.30 level.
Developed by Tom DeMark, the TD Sequential tool helps identify areas where price trends may pause or reverse. In this case, the “9” buy setup signals that the recent bearish sequence could be nearing completion. Chainlink has traded within a narrow range between $17.00 and $17.70, showing consolidation after a decline from $19.50.
The data suggests the market may be preparing for a rebound. Historical instances of the TD Sequential buy signal on Chainlink’s 4-hour chart have preceded short-lived rallies of 5%–12%, provided broader crypto conditions remain steady. The current setup mirrors those patterns, indicating that the downward phase may be running out of momentum.
Technical Data Shows Mixed But Improving Outlook
Chainlink’s recent technical behavior has reflected both weakness and resilience. The asset has declined 18.03% in the past 30 days and is still down 11.71% for the year. Yet, its 180-day growth of 18.72% and 1-year gain of 55.91% show long-term recovery potential remains intact.
The previous TD Sequential “9” sell setup near $19.50 marked the end of the last bullish impulse, initiating the correction phase that followed. Since then, LINK has formed consistent lower highs and lower lows, indicating seller control. However, the appearance of a buy signal now suggests that this control may be waning.
Ali, the cryptocurrency analyst, observed that the TD Sequential buy signal could be the start of a short-term rally if buyers continue to offer price support above $17.00. The candlestick formation shows narrowing price ranges, which reflect that sellers are losing strength and buyers gradually return to the market.
Market Sentiment Picks Up Despite Short-Term Volatility
Trader sentiment data supports the likelihood of a bullish response to the Chainlink TD Sequential signal. On Binance, the LINK/USDT long/short ratio stands at 2.4423, showing a strong long bias among traders. Top traders maintain an even higher ratio of 2.8153, while OKX traders show a 1.77 ratio, suggesting cautious optimism across major platforms.
CRYPTOWZRD observed that LINK’s daily close appeared indecisive, but he expects positive price movement and potential short-term trading opportunities if Bitcoin maintains its current stability. This verifies the technical buy setup, underpinning near-term optimism.
Immediate resistance is in the range of $17.70 to $18.00 — a significant range that acted as a breakdown point earlier. If the bulls manage to hold a breakout above this range, the subsequent targets for the upside may extend up to $18.50–$18.80. But if LINK breaks down below $17.20, the market may drop to $16.80 as the next support area.
At the aggregate level, the Chainlink TD Sequential buy signal reflects a shift in short-term dynamics since the recent correction could now lead to a relief bounce. As sentiment becomes stronger and volume stabilizes, LINK traders are looking for confirmation signs on this nascent reversal.