Chainlink (LINK) price is facing difficulties in bouncing back from recent losses, primarily due to a lack of network activity. Despite an uptrend in the broader market, momentum remains weak. Analyzing on-chain data and chart patterns reveals potential outlooks for LINK.
What’s Affecting Chainlink?
The price of Chainlink is struggling to regain lost ground as its Network Value to Transactions (NVT) ratio has soared to its highest in over four years. This elevated NVT ratio suggests that the network’s value is disproportionate to its transaction volume, often a precursor to price corrections. Furthermore, Chainlink’s Relative Strength Index (RSI) is also in negative territory, indicating downward momentum. Access NEWSLINKER to get the latest technology news.
Though there is an increase in bullish momentum as indicated by the rising RSI, the altcoin may struggle to gain traction until the RSI’s neutral line turns into support. A lack of buying pressure reflected in the RSI could inhibit significant price recovery without additional positive influences.
LINK Chart Analysis
Currently, Chainlink’s price stands at $10.42, a considerable distance from its recent highs. With its value at a ten-month low, LINK needs more than on-chain data to push its price upwards. It is likely to consolidate below the $11.00 level, with limited chances of breaking above it. The price may fluctuate within the range of $9.35 to $11.00.
Nevertheless, should LINK transform the $11.00 level into a support zone, it might witness an uptrend, potentially exceeding $11.99. Breaking this resistance could invalidate the bearish outlook and pave the way for further recovery.
Concrete Insights and Market Implications
Key takeaways for investors include:
- High NVT ratio suggests possible future price corrections.
- Negative RSI indicates ongoing downward momentum.
- Price consolidation is expected below $11.00 in the short term.
- Potential uptrend if $11.00 turns into a support level.
- Breaking the $11.99 resistance is crucial for a bullish reversal.
In conclusion, Chainlink faces significant challenges in recovering from its recent downturn. Stronger signals or external factors will be necessary to break the current bearish trend.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/chainlink-faces-recovery-hurdles