Chainlink (LINK) Sees 600% Surge, Setting the Stage for a Sustained Uptrend
- Chainlink’s price surged by 22% in the last 30 days, driven by strong investor confidence.
- The increase in Coin Holding Time and MVRV ratio indicates potential for further gains.
Chainlink (LINK) has witnessed a notable 22% price increase over the past 30 days, positioning itself as one of the top-performing cryptocurrencies within the top 20 by market capitalization.
One factor that can be attributed to the current performance of Chainlink is the behavior of its investors. According to IntoTheBlock, Chainlink Coin Holding Time has risen by 677% from late July onwards.
This metric which measures the average time investors hold onto the tokens shows increased confidence in Chainlink for the long term. An increase in holding time means that investors are choosing to keep their LINK tokens instead of trading them, thus decreasing the supply and perhaps increasing the price.
The increase in holding time also points to changes in investors’ investment strategies. Long-term holdings of tokens by investors generally suggest that they have high expectations of the assets’ value in the future. This behavior is important in order to maintain the recent price gains of Chainlink, as a reduction in selling pressure can lead to a more stable price action.
MVRV Ratio Points to Potential Price Continuation
Another factor that supports the Chainlink bulls is the Market Value to Realized Value (MVRV) ratio. This ratio helps determine if an asset is overvalued or undervalued given its market price in comparison to the realized value of the asset. At the moment, Chainlink’s 30-day MVRV ratio is at 13.56%, which means that the cryptocurrency is in good condition with a reasonable level of unrealized gains.
Source:SantimentHistorically, when Chainlink’s MVRV ratio has risen above this level, it has gone as high as 20%. If this pattern continues, the price of LINK could go up, possibly exceeding $12. However, it is crucial to understand that a high MVRV ratio may result in profit-taking, which can cause a short-term retracement in the price but signals a high level of market engagement and interest in the asset.
Key Support Levels and Price Projections
The technical analysis also favors the bullish view of Chainlink. Crypto analyst Rekt Capital noted that the price of LINK had fallen to around $8.19, which is near the upper level of the previous accumulation zone. This level has now been confirmed as a new support level, and this is the beginning of a new uptrend.
Following this test, the price of Chainlink has started to rebound and is now trading above a significant historical demand area. This zone highlighted by an orange box on the technical charts has provided support in the past and is being tested once again. If Chainlink is able to close above this zone by the end of the week, it will likely indicate that this is a solid support level, paving the way for further price appreciation.
The possibility of a retracement of this zone is particularly important. If the price approaches this zone
and bounces back, it would indicate the strength of the support and could open up the path for LINK to test higher resistance levels. As per Rekt Capital, the next major trading zone for Chainlink is between $13.10 and $16.86, which is the top side of the present trading range.
Avertissement : le contenu de cet article reflète uniquement le point de vue de l'auteur et ne représente en aucun cas la plateforme. Cet article n'est pas destiné à servir de référence pour prendre des décisions d'investissement.
Vous pourriez également aimer
Messari : Mise à jour clé du troisième trimestre sur l'état du réseau Akash
Ce qui doit se passer avant que le bitcoin n'entre en mode découverte de prix
Le BTC continue de dépasser les attentes en se maintenant près de 90 000 $
MARA manque les attentes de revenus du T3, augmente ses réserves à 26 747 BTC
La société, anciennement connue sous le nom de Marathon Digital, a annoncé des bénéfices du troisième trimestre inférieurs aux attentes. MARA a miné 2 070 BTC et acheté 6 210 BTC au cours du trimestre.
Coinbase lance l'indice COIN50, négociable en tant que contrat à terme perpétuel avec un effet de levier allant jusqu'à 20x
Coinbase a lancé un nouvel indice représentant les 50 principaux actifs numériques cotés sur sa plateforme qui répondent aux critères fondamentaux d'inclusion de l'indice. L'indice COIN50 est également disponible pour le trading en tant que contrat à terme perpétuel avec un effet de levier allant jusqu'à 20x.