Chainlink (LINK) has garnered significant attention for its impressive performance in recent weeks. LINK managed to surge past the $8 mark, but as of the latest market data, it appears that the bullish run might be losing steam, with a 4.39% drop recorded over the past 24 hours. As the cryptocurrency community watches closely, experts are speculating about Chainlink’s next moves.
Michaël van de Poppe, CEO, and Founder of MN Trading, took to Twitter to share his insights on Chainlink’s current situation. He believes that it needs to establish a “higher low” in its price chart before Chainlink can break out of its current range. Van de Poppe suggested that the optimal level for this higher low would be $7, but he expressed uncertainty about whether the cryptocurrency would reach that point.
This cautious optimism stems from analyzing on-chain data, particularly Santiment’s Market Value to Realized Value (MVRV) ratio. This metric plays a crucial role in gauging potential market tops and bottoms. A high MVRV indicates an asset may have reached its peak price, while lower values suggest accumulation phases.
One analyst, Ali, shared data from Santiment that raised concerns about LINK’s recent MVRV levels. According to Ali’s findings, LINK’s MVRV 30D recently surpassed 20%, signaling a potential need for a correction in the cryptocurrency’s price. Historically, whenever its MVRV 30D exceeded 19%, it experienced substantial price corrections.
The significance of the MVRV ratio in predicting Chainlink’s future price movements cannot be understated. While the crypto community keeps a close eye on Chainlink’s performance, it remains to be seen whether $7 will prove to be the crucial breakout point that many are anticipating.
Chainlink’s Current Price
However, as of now, LINK is trading at $7.68 with a 24-hour trading volume of $371,341,355. Chainlink is down 4.21% in the last 24 hours, while a 2.75% rise in the weekly chart. The current CoinMarketCap ranking is #19, with a market cap of $4 billion.
According to technical analysis, a bullish trend is evident in the long term. Therefore, PricePrediction sites anticipate a $0.10308 price increase for Chainlink over the upcoming 7 days, projecting a value of $7.74 by October 10, 2023. In contrast, in the short term, machine learning algorithms have identified a bearish trend for LINK. Consequently, investors should prepare for a minor decline in the coming hours.
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