Chainlink (LINK) Price Breakout: Will Long-Term Investors Hold Out?
Chainlink (LINK) price experienced an unexpected 8% rebound on August 23, despite the prevailing fear, uncertainty, and doubt (FUD) in the altcoin markets. The question now is whether investors will continue to hold out for a potential price breakout to avoid significant losses.
Main Breakdowns:
- Long-term investors are holding firm, inspired by recent partnerships and network integration announced by Chainlink.
- Mean Coin Age, which measures the sentiment among long-term investors, has increased by 13%.
- Current prices are still unfavorable for most LINK holders, with potential double-digit losses if they sell now.
- Chainlink bulls could push for a sustained price breakout towards $10, according to on-chain indicators.
- Bears could invalidate the price breakout prediction if the LINK price drops below $6.
Based on the analysis of Mean Coin Age, an uptrend indicates positive sentiment among long-term investors. If these investors continue to hold (HODL), it could lead to a sustained price breakout for Chainlink.
However, despite the recent 8% price gain, most LINK holders would still face double-digit losses if they sell immediately. The MVRV ratio analysis reveals that those who bought LINK in the last 30 days hold 14% unrealized losses. To avoid this, LINK traders may wait until the price breaks above $7.
If the price breakout continues, Chainlink bulls could potentially push the price towards $10. The In/Out of Money Around Price data suggests initial resistance at $7, with the possibility of a bearish reversal if early profits are booked. On the other hand, if the support level of $6 is breached, the LINK price could drop to $5.
Hot Take: The Chainlink (LINK) price rebound on August 23 may be a sign of hope for long-term investors, but caution is still advised as the altcoin market remains uncertain. The upcoming days will reveal whether the price breakout will be sustained or if bears will reverse the gains.
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