Chainlink (CRYPTO:LINK) is under scrutiny as recent analyses reveal key indicators suggesting an imminent correction, highlighted by a noticeable decline in daily active addresses and a troubling death cross formation on the EMA lines.

A significant drop in LINK's daily active addresses from late March into April signals a diminishing interest among users, potentially presaging a downturn in market valuation as reduced network activity often correlates with lower demand.

The Average Directional Index (ADX) for LINK has escalated to 30.2, indicating a strong and likely persistent downward trend, reinforcing concerns about the asset's short-term price stability.

The occurrence of a death cross on LINK's price chart, a technical event often associated with the transition to a bearish market phase, further compounds the likelihood of an upcoming price correction.

While the current outlook for LINK seems bearish with potential to drop below the $16 mark, a market reversal could propel it past resistance levels, offering a glimpse of hope for investors eyeing recovery to higher valuations.