The Chainlink market shows clear potential for increase because its MVRV ratio currently stands at -16.3%. LINK is likely to begin its upward surge after hitting bottom because its MVRV ratio dropped so much.
The LINK purchase looks promising since the MVRV ratio dropped below zero before major price growth. The current Chainlink price stands at $18.08 and shows a minor decrease of 0.85%. The crypto analyst Ali Charts observes that when the MVRV ratio dips under -16%.
Chainlink normally rebounds afterward. When the indicator read -16.3% it showed most traders were losing money which created an opening for strong market recovery.
Key Resistance Levels for Chainlink’s Price Breakout
Ali Charts bases his market optimism on LINK trading data during his report. From August through December 2023 LINK tokens gained 312% throughout four months despite reaching this MVRV position first. The recent LINK price rise shows investors an opportunity to purchase the tokens effectively.
Lower selling pressures are the market response to an MVRV drop below zero. Such periods attract fewer sellers of their assets and bring more buyers to market accumulation. Since these conditions exist, LINK is most likely to rebound greater than 300% from its previous MVRV level.
According to IntoTheBlock’s In/Out of the Money indicator many LINK traders purchased their tokens between $20 and $26. Buyers and sellers together purchased 70 million LINK tokens at the range of $18.27 and $19.88 making them crucial resistance areas. Breaking through the resistance at this level would validate that the price trend has changed to go up.
The price points between $14.40 and $16.93 become essential support for LINK because traders staked approximately 157 million LINK tokens here. Investor defenses reinforced around this key level show their commitment to support LINK in case of a downturn so price has strong upward momentum.
The Role of Whales in LINK’s Potential Price Surge
Chainlink shows increasing potential due to strong purchases made by large investors. Major wealth holders bought 1.01 million LINK tokens for $20 million at today’s market rates. The bulk purchase from large LINK investors at current prices shows they believe the token will break through its present trading limits.
LINK needs to exceed the $19.52 middle Bollinger Band to start an upward price trend. When buyers gain enough momentum they will push the price of the asset upward. Traders should watch for clear signs in the MACD indicator as its lines have just started moving together from below. When the MACD line clearly rises above its signal line it will strengthen evidence that a buying opportunity exists.
The increased interest by whales during accumulation could trigger a fast price uptrend for LINK tokens. Sustained buying pressure will push Chainlink towards a new price level of $23 and open the path for more extended growth. Market players need to follow LINK’s key resistance and support levels to benefit from Chainlink’s major price rise.
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