- Chainlink [LINK] has experienced an increase in the number of long-term holders despite the recent bearish trend in its price action.
- Metrics indicate a significant buying pressure, suggesting a potential price rise in the near future.
- A recent analysis suggests that LINK could reclaim the $12.10 mark, provided certain conditions are met.
Discover how Chainlink [LINK] is poised for a potential rebound despite recent price declines, highlighting increased long-term holder confidence and bullish market indicators.
Chainlink’s Current Market Position
In the past 24 hours, Chainlink [LINK] saw minimal price improvement, marking an 8% decline over the past week. Currently, LINK is trading at $10.7 with a market capitalization exceeding $6.5 billion. According to IntoTheBlock’s data, a mere 35% of LINK investors are currently in profit. However, a positive sign is the growing number of wallets holding LINK for over a year, implying increased long-term investor confidence that LINK’s value will rise.
On-Chain Data Analysis
Chainlink’s supply metrics have shown that buying pressure on the token remains high. Specifically, its supply on exchanges has diminished while the supply held outside exchanges has seen an uptick. This trend is often a bullish indicator, as it suggests that holders are moving their assets off exchanges in anticipation of future price increases. The MVRV (Market Value to Realized Value) ratio has also improved significantly, supporting the potential for a bullish turnaround. However, it’s worth noting that the network growth has slowed, indicating fewer new addresses are being created for LINK transactions.
Market Sentiment and Technical Indicators
At this moment, Chainlink’s fear and greed index stands in the “greed” zone. Historically, reaching this level has sometimes preceded a price decline. However, technical charts provide a more optimistic outlook. The MACD (Moving Average Convergence Divergence) indicator shows a potential bullish crossover, suggesting positive momentum. Additionally, the Money Flow Index (MFI) has recorded a slight increase, which is another indicator pointing to potential price growth. According to Crypto Tony, a well-known crypto analyst, if Chainlink reclaims the $12.10 mark, it would signify an entry point.
Short-term Price Prognosis
Our analysis suggests that for Chainlink to make a run towards $12.10, it must first surpass the $11.28 threshold in the coming days. This perspective is reinforced by expectations of an imminent rise in liquidation events, which often precede price corrections. Conversely, if bearish forces dominate, Chainlink’s price could potentially fall to $9.3. Investors should remain cautious and closely monitor these key levels.
Conclusion
In summary, Chainlink’s short-term market outlook appears mixed, with strong buying pressure and a bullish technical setup creating optimism among long-term holders. However, the overall sentiment and network activity present reasons for cautious trading. Investors should watch out for the critical price levels of $11.28 and $12.10 while preparing for the potential downside risk toward $9.3. This dynamic environment underscores the need for vigilant market monitoring and disciplined investment strategies.
