- Chainlink (LINK) recently surged to $16.21 but faced volatility, currently hovering around $15.35.
- Technical indicators like NVT and MVRV ratios suggest LINK is undervalued, and favorable for investors.
- Historical data indicates LINK has the potential to rebound, with past rallies supporting a return to $17 or higher.
Chainlink (LINK) experienced an upward trend to $16.21 on Wednesday, June 12. Nonetheless, this upward movement was rather short-lived, whereby the price became volatile and eventually pulled back to be a bearish breakout. However, with these price fluctuations, there is still great interest in Chainlink’s token, where trading volume exceeds $367m within the last 24 hours.
At the time of writing the LINK price is approximately $15.35, therefore hereby revealing a weekly drop of 12.2%. These figures influenced the initial boost in the LINK prices by pointing to a lower Consumer Price Index (CPI).
This saw broader crypto market recovery and its components, such as LINK, get a boost. However, these gains were indeed temporary when BTC and other altcoins reduced the highs seen during the bull run. Despite this recent pullback, LINK has found the range and remains in a location where another impulse to the upside could be possible.
Technical analysis indicators like the Network Value to Transactions ratio and the Market Value to Realized Value ratio indicate that Chainlink could be trading at a discount which allows value investors to get into the coin at a good risk-to-reward ratio. The NVT ratio for any cryptocurrency is arrived at as the ratio of total market capitalization with the volume transacted in the network. A high NVT ratio usually indicates that market capitalization exceeds transaction volume, often indicating overvaluation.
A low NVT Ratio, such as LINK’s 93.04, implies that transaction volume exceeds market capitalization growth, implying that the network is undervalued and capable of handling a large number of transactions. The MVRV ratio compares a cryptocurrency’s market value to its realized value, utilizing profitability metrics to evaluate whether prices have achieved a local peak or bottom.
According to Santiment, Chainlink’s 30-day MVRV Ratio is -9.02%. This negative figure implies that selling at the current price would result in a loss for the majority of LINK investors, indicating a possible accumulation zone.
Historical evidence supports the notion that a price increase for LINK is possible. For example, between May 15 and May 28, the LINK price grew from $12.96 to $18.77, while the MVRV Ratio increased from -6.45%. Another substantial increase happened in April when the MVRV ratio was -21.37% and the LINK price increased from $13.08 to $15.62.
Given these past trends and LINK’s current indicators, a price comeback appears inevitable. If this trend continues, LINK might reach $17.70 within a week or two, and in a bullish market, it could even rise above $18.57.
Despite these positive expectations, traders should exercise caution. The liquidation heatmap, which predicts where large-scale liquidations may occur, displays the magnetic liquidity zone around $15.04. If LINK’s uptrend is rejected, the price may fall into this range, leading to massive losses for the bulls.
To limit potential losses, traders should establish a stop-loss objective above the likely liquidation price. Monitoring market dynamics and keeping up with crucial variables will be critical in managing LINK price swings in the coming days.
Read Also
The post Unlocking Chainlink’s Potential: Is $17 the Next Target for LINK Price? appeared first on Crypto News Land.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed