In the wake of a challenging week marked by negative news from Mt. Gox and the German government’s Bitcoin dump, the cryptocurrency market experienced a brief period of relief. Chainlink (LINK) managed to gain more than 4% in value over a 24-hour period, despite facing significant bearish pressure. This positive trend was reinforced by the accumulation of over 6.2 million LINK by large holders, with the total value of the haul amounting to approximately $76.88 million at current prices. The fact that whales are increasing their stake in LINK indicates a sense of confidence among major players in the market, despite the asset’s recent loss of nearly 10% amidst a broader downturn.
Positive On-Chain Metrics and Market Signals
Multiple factors point towards a potential bullish outlook for Chainlink, according to industry experts. Analysis of on-chain metrics suggests a possible 10% recovery in LINK’s price, as key indicators show positive signs. Notably, the supply of LINK on exchanges has decreased by almost 3% in the past two weeks, which typically reduces selling pressure and creates a conducive environment for price recovery. Additionally, the 30-day Market Value to Realized Value (MVRV) ratio currently stands at -9.34%, a level historically associated with price reversals. A negative MVRV ratio indicates undervaluation of the asset, increasing the likelihood of a price rebound as market sentiment shifts. Another significant metric is the realized losses incurred by traders, totaling over $47 million from June 24 to July 8. This trend of capitulation often precedes a market recovery, further supporting the positive outlook for Chainlink.
Optimistic Technical Analysis for LINK
Technical analysis of Chainlink provides further encouragement for a potential price recovery. The $13.84 level, which aligns with the 23.6% Fibonacci retracement from the asset’s peak in March to its low in July, is seen as a key resistance level to surpass. If LINK manages to climb back to this level, it could signal a strong recovery in its price. Moreover, the asset recently entered the Fair Value Gap (FGV) range between $11.62 and $12.11, indicating liquidity accumulation. As a result, the next target price range for Chainlink is projected to be between $13.73 and $14.24, further enhancing the positive outlook for the cryptocurrency.
Overall, the accumulation of LINK by whales, positive on-chain metrics, and optimistic technical analysis all point towards a potential recovery and bullish trend for Chainlink in the near future. Despite recent market challenges, the confidence shown by large holders and market analysts suggests that LINK may be poised for a significant price increase in the coming weeks.