Chainlink (LINK) has faced some challenges recently, struggling to keep pace with other cryptocurrencies that have seen promising gains. However, recent analyses suggest that LINK could potentially reclaim the $12.10 mark in the near term. Here’s a closer look at LINK’s current situation and its prospects for the near future.
In the last 24 hours, Chainlink's performance has been lackluster compared to its peers. The token has experienced a notable 8% decline over the past week and is currently trading at $10.70. With a market capitalization exceeding $6.5 billion, LINK has shown some resilience. Despite recent setbacks, the number of wallets holding LINK for over a year has been increasing, indicating a growing confidence among long-term investors.
Popular crypto analyst Crypto Tony has indicated that Chainlink could see a rebound if it successfully reclaims the $12.10 level. According to Tony, achieving this price point could prompt renewed investment interest in LINK. To assess the likelihood of this rebound, AMBCrypto reviewed on-chain data and other relevant metrics.
AMBCrypto’s analysis, utilizing data from Santiment, revealed that Chainlink is experiencing high buying pressure. This is reflected in a reduction in LINK’s supply on exchanges, coupled with an increase in supply held outside of exchanges. Such trends are typically bullish, suggesting a potential price increase.
The Market Value to Realized Value (MVRV) ratio, another critical indicator, has improved significantly over the past week. This uptick in the MVRV ratio suggests that Chainlink may be poised for a bull rally soon. However, the token has seen a decline in network growth, as evidenced by fewer new addresses being created for transactions. This decrease in network growth could potentially dampen the bullish sentiment.
Despite the mixed signals, Chainlink’s technical indicators offer some optimism. The Fear and Greed Index for LINK is currently in the "greed" phase, which often precedes a price correction. Nevertheless, the daily chart shows a promising development: the Moving Average Convergence Divergence (MACD) indicator suggests a potential bullish crossover. Additionally, Chainlink’s Money Flow Index (MFI) has registered a slight uptick, further hinting at a possible price increase.
Chainlink’s recent performance has been underwhelming, but there are several signs suggesting a potential recovery. Long-term investor confidence, positive buying pressure, and favorable technical indicators collectively point towards a potential rebound. If Chainlink manages to reclaim the $12.10 level, it could signal the start of a bullish trend for the token. Investors should keep an eye on these developments and monitor Chainlink’s price movements for further insights.
August 2024, Cryptoniteuae