Chainlink (LINK) price may continue to suffer at the hands of bears due to the lack of activity on the network. What makes the situation worse is the broader market data, which is bullish but has yet to gain strong momentum. So what is in store for LINK based on onchain data and chart analysis? Let’s take a look together.
What’s Happening on the Chainlink Front?
Chainlink’s The price may have some difficulty recouping its recent losses. This is because Chainlink’s NVT ratio has reached its highest level in four years and eight months. This signals possible downtrends for the crypto asset. This high NVT ratio suggests that the network’s value may be overextended relative to its trading volume, and such a situation usually precedes a price correction. In addition to the NVT ratio, Chainlink’s Relative Strength Index (RSI) is also in negative territory. The RSI is followed as a key momentum indicator, and its current position suggests that LINK is experiencing bearish momentum. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Rising RSI Although bullish momentum is building as indicated by the level, the altcoin may struggle to find upward momentum until the neutral line is reversed into support. The lack of buying pressure reflected in the RSI level may prevent a significant price recovery without additional positive drivers.
Considering these indicators, Chainlink may need stronger clues or external factors to break out of this bearish phase.
LINK Graphic Analysis
Chainlink’s At $10.42, the price is far from recouping the profits lost in the recent drop. With the altcoin’s value at a ten-month low, LINK may need more than this onchain data to push it back up. For now, the most likely outcome seems to be consolidation below the $11.00 level. The chances of breaking above that are slightly low and it could remain range-bound above the $9.35 level.
However, if the $11.00 support is turned around, the altcoin could register an uptrend and potentially surpass the $11.99 level. A breakout of this resistance would invalidate the bearish thesis and allow for further recovery.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
