Chainlink has been the star of the crypto market for two years.
And while the crypto asset at number 11 outperformed almost everything else in space, its momentum could soon come to a standstill as an accurate sell signal triggered the altcoin's daily price charts.
Remember Chainlink's rise to the top of the crypto charts
In late 2018, Bitcoin collapsed from $ 6,000 to $ 3,000, and the rest of the crypto market was decimated in the carnage.
Altcoins suffered worse, if not as bad. Chainlink hit a low of just 12 cents per LINK token for the USD trading pair.
Chainlink gained over 3,850% over the next few months, peaking in 2019 at $ 4.65 per LINK token.
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Shortly before Black Thursday's collapse, which shook the stock market, precious metals and cryptocurrencies while Bitcoin was struggling with USD 10,000 resistance, Chainlink hit a new all-time high just before the sell-off began, reaching USD 5 per LINK token.
The prices for the LINKUSD trading pair fell below $ 1.33 per token.
Chainlink is now trading above $ 4 again, which can only be of short duration, however, as an accurate sell signal triggered by LINKUSD's daily price charts indicates that the Altcoin's momentum is weakening.
TD9 sell setup triggered for Altcoin trading pair against USD
After breaking his previous record and reaching a new all-time high in February 2020, Chainlink was unable to catch up. Most cryptocurrencies don't either. However, more was expected from the superstar Altcoin, known for its over-performance.
Could these days be over? Given Chainlink's strong value proposition, which has helped Chainlink to climb in the first place, this is unlikely. However, a setback is expected in the short term.
Chainlink has triggered a TD9 sales setup for the LINKUSD trading couple. The TD9 setups signaled by the TD Sequential Indicator have been extremely reliable in the last few years of the price campaign for cryptocurrencies.
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It named Bitcoin's top, the lows in December 2018 and 2019, and most recently the top of the February rally just before the historic Thursday Thursday breakdown.
The accuracy of the signal has been proven in many types of financial markets and the tool was developed by the market timing expert Thomas Demark.
Because the indicator is so accurate and designed specifically for timing markets, a sharp decline in the LINKUSD pair is likely in the coming days or weeks and would confirm that the signal is valid.