Will LINK Price Charge Ahead?

The cryptocurrency market has been experiencing a resurgence following a recent downturn, leading to an increase in the price of Chainlink. The uptrend in Chainlink’s price can be attributed to the slowdown in inflation in the US, which has sparked renewed trading interest. However, there are concerns that LINK may be overvalued and could trigger a correction soon due to a decline in key on-chain data, dampening hopes for further recovery.

Chainlink’s price has been on a strong recovery streak, breaking above the crucial $14 level and triggering significant liquidations totaling $1.57 million. Sellers liquidated over $1 million worth of positions, while buyers sold $470K worth. Despite the price surge, Chainlink’s MVRV ratio has dropped from 1.42 to 1.13, indicating that the recent increase in price may be driven more by speculation than real value gains.

The falling MVRV ratio suggests that the average price at which Chainlink tokens were last traded does not align with the current market price, making the altcoin potentially overvalued as it surpasses resistance levels. Despite this, Chainlink remains a top altcoin due to its strong development activity and technical support.

Large investors have been accumulating Chainlink, with 3 million purchases in the last five days, indicating strong investor confidence. Additionally, a 35% surge in open interest to $580 million reflects growing confidence among traders.

Looking ahead, Chainlink is approaching the $15 resistance level with strong buying interest, currently trading at $14.4 after an 11.52% increase in the past 24 hours. The altcoin faces resistance at $14.7, with the RSI nearing overbought levels at 78, suggesting a possible correction. Breaking above $14.7 could propel Chainlink towards $17.6, while failing to do so may lead to a drop to $11.7 and potentially a significant correction.

With the long/short ratio at 2.17, indicating a surge in buying trend, there is a risk of a false breakout. Despite this, 68.5% of traders anticipate further upward movement in Chainlink’s price. Overall, the cryptocurrency market remains volatile, and investors should proceed with caution amidst the ongoing recovery.