Chainlink (LINK) has struggled just like other cryptocurrencies over the last one month. Looking at the weekly chart, the coin has dropped by over 3%. Additionally, in the longer time frame chart, the coin has dropped by over 40% over the last one month.
#Chainlink $LINK has dropped nearly 40% over the past month, leaving investors wondering: Is a rebound on the horizon?
Let’s dive in 👇🧵
— Ali (@ali_charts) February 19, 2025
However, LINK could be set for a reversal based on the recent price performance. With investors now very concerned about the movement of the price of LINK moving forward, crypto analysts have pointed for a prospected price rebound.
How is LINK Performing Today?
On the day, the native token of Chainlink (LINK) is performing quite fairly. According to Coinmarketcap data, the coin is currently trading at $18.11 with just a small increase of 0.09% on the day. Nonetheless, following the recent decline which risked a test of the $17 support level, it’s clear that Chainlink has held above this level.
LINK’s trading activity has shown a mild downward movement recently with a minimal decrease over the last 24 hours. The coin has recorded a trading volume of $494.12 million in that period. This is a 6.21% decline in the day hence confirming a slowdown in trading activity.
Chainlink Price Rebound On The Horizon; Analyst
The market has shown positive signs that Chainlink might be set for a recovery in the upcoming price movement. Key analyst Ali Martinez for instance, used multiple posts on X to present various indications of why LINK might experience a price recovery.
According to Martinez the current price correction demonstrates network shrinking due to a decrease in network usage. The chart below shows how the decreasing network growth since 30th November last year.
Additionally, the Market Value to Realized Value (MVRV) Ratio has also depicted the slowdown in activity on the Chainlink network. The MVRV Ratio is usually used to track trader profitability.
The MVRV Ratio currently shows that “those who bought LINK in the past 30 days are sitting at an average loss of -16%.” Historically this level has been deemed as the ‘selling exhaustion point’.
However, the price of Chainlink has rebounded when the MVRV Ratio drops to the current point. For instance, LINK experienced gains of 312%, 64%, 61%, 25%, and 52% when this happened in the past. Martinez cited that currently, the “MVRV sits at -16.3%, signaling another rebound on the horizon!”
LINK Whales Are Buying The Dip Highlighting Bullish Sentiment
Chainlink investors also seem to be regaining their confidence around LINK. During the previous 24 hours these whales increased their LINK token ownership to $20 million.
These whales also bought approximately 1.10 million LINK tokens between 17th and 18th of Feb 2025. These buying activities during the last two days signal the return of big investors’ trust in LINK after its recent price downturn.
The price of Chainlink has to move past resistance at $19 to establish an uptrend. If this happens, the price would extend to the next target situated at $23.70. However, if the $15.50 support level gets breached this would confirm further decline in the market which could result in a steeper price dip.
This news is republished from another source. You can check the original article here