The Current Situation with Chainlink (LINK)
Currently, Chainlink is facing challenges in the market that may result in a price drop. This drop is crucial for the altcoin to start a recovery process to make up for recent losses.
Chainlink Investors’ Potential Actions
- Short-term pessimism is evident among investors, indicating a possible price drop for LINK.
- The recent correction has discouraged new investors from joining the Chainlink network, leading to a decrease in network growth.
- Low network growth suggests that Chainlink is not attracting new users at the moment, which could negatively impact the token’s price.
Additionally, Chainlink is currently undervalued based on the Market Value to Realized Value (MVRV) ratio, which presents a bullish opportunity.
- The 30-day MVRV ratio for Chainlink is at -16%, indicating potential losses for investors.
- Historically, a LINK price recovery usually occurs at MVRV ratios of -7% and -17%, creating an opportunity zone for investors.
- There is still some room for LINK investors to purchase the token and kickstart a recovery process.
Predicting LINK Price Movement: Key Support Levels
- Currently, LINK is trading below the $13.2 support level, which aligns with the 23.6% Fibonacci Retracement.
- If LINK falls below the $12.7 support, there is a high likelihood of further decline towards $11.7 before a rebound.
- However, if Chainlink manages to hold the $12.7 support and reclaim the 23.6% Fibonacci Retracement as support, it could signal the beginning of a recovery phase.
Hot Take: Seize the Opportunity in Chainlink
As a crypto investor, keeping track of Chainlink’s network growth and MVRV ratio can provide valuable insights into potential price movements. By understanding key support levels and market conditions, you can make informed decisions on when to enter or exit positions in Chainlink.
By
By
By