Key Insights
- Chainlink price is primed for a 312% rally as MVRV ratio drops to -16.3%.
- Technical indicators look oversold, suggesting a potential rebound is imminent.
Following a decline of over 40% over the past month, Chainlink crypto looks primed for a potential rebound.
At press time, Chainlink price was trading at $17.98, noting a 0.6% rise in the past 24 hours. Its market cap stood at $11.58 Billion, ranked 11th in the overall crypto market.
It has been caged inside a falling channel pattern and stayed close to the 200 day EMA mark. Furthermore, the MVRV ratio flipped negative and could lead to a significant upward rally ahead.
Chainlink Price Could Rally 312%: MVRV Ratio Suggests
Crypto Analyst Ali Charts on X suggests that Chainlink price is experiencing a rebound whenever the MVRV ratio falls below -16%. The indicator now displays a value of -16.3%, showing that investors are currently in a losing position.
Chainlink crypto experienced a 312% price surge in August 2023, four months after MVRV reached its lowest point, according to Ali. LINK price showed a modest increase during the same period.
Historical data revealed that a current negative MVRV reading may indicate prospective buying opportunities which could generate a significant price rebound for LINK.
Chainlink Dominates RWA Space with Strong Market Presence
Data from Santiment shows that Chainlink crypto leads all other projects in Real World Assets (RWAs).
Chainlink demonstrated superior development activity by exceeding the progress made by Synthetix (SNX) and the RWA-focused models of Dusk Foundation (DUSK) and Reserve Protocol (RSR).
Chainlink maintained 669 substantial GitHub events through the most recent 30-day period.
Per the data from IntotheBlock shows that, around 75% of LINK holders were sitting on profits, whereas more than 24% of the holders were facing unrealized losses.
Furthermore, the holding ratio indicates that $15.50 is the most critical support level where 159.32 million holders bought LINK. However, the resistance zone was at $19 and $23.70.
Chainlink Price Prediction: What are the Charts Saying?
On the daily charts, Chainlink price has been forming lower highs and lower lows and continued to decline significantly over the past few weeks.
Since mid-January, Chainlink price traded under the bears’ control and lost more than 30% from the channel’s upper trajectory.
At press time, Chainlink price stood at the critical support zone around the 200 day EMA and is poised for a recovery.
A recent post on X by CW highlighted that the lower trendline formed a convergence pattern and is providing support, once again. If Chainlink price continues to hold support above the trendline, it could see a rebound.
In case of a successful rebound, Chainlink crypto could target $31. However, a break beyond the $31 mark could permit the bulls to smash the $37 sell wall.
Meanwhile, the bulls need to defend the $15 support wall to validate the bullish thesis.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
