In the midst of a period some are calling ‘Uptober’, the cryptocurrency Chainlink has emerged from the crowd as a key player. Over the last few weeks, Chainlink’s price has been pushing towards the $12 mark, a goal somewhat hindered by increasing selling pressure. Yet, bulls remain optimistic due to a key metric shift—the NVT signal. A decreasing NVT signal suggests that the transaction volume is closing in on Chainlink’s market capitalization, a sign of bullish network activity.
Chainlink: A Potential for Further Price Surge
Chainlink has consistently been a favorite amongst whale investors, primarily due to its volatility which continues to draw in buyers. According to recent data from IntoTheBlock, there’s been a spike in large transactions, hitting an impressive $1.2 billion within a week. This increase in large transactions demonstrates a growing interest from whales, which in turn drives the altcoin’s price.
In October, the NVT (Network Value to Transaction) ratio hit a high of 160, suggesting that the network was overpriced. However, this ratio has since significantly decreased and has now leveled out at around 28. This drop indicates that transaction volume has risen, thereby providing stronger support for the network’s value. As a result, there’s a greater chance of a Chainlink price breakout above $12 in order to maintain the network’s value, leading to increased buying demand.
Key Metrics Indicate a Bright Future
The MVRV ratio has also seen a substantial increase, jumping from 1.27 to 1.38. With the MVRV ratio being well below market tops and red zone, there is a potential increase in buyers’ confidence, suggesting further price surges in the days to come.
The market cap, which represents the total dollar value of circulating cryptocurrency supply based on average daily exchange prices, and realized value, which estimates the total spent on all coins by tracking their market value during on-chain transactions, are both crucial metrics to consider. A high MVRV suggests potential overvaluation, while low values may indicate potential undervaluation of Chainlink.
What Lies Ahead for Chainlink?
Recently, Chainlink price tried to dip below the moving averages, but the bears couldn’t take advantage of this. This implies that selling pressure was converted into buying near lower price levels. At the time of writing, the LINK price trades at $11.2, dropping over 2.1% from yesterday’s rate.
The 20-day EMA at $11.2 has leveled off, and the RSI is hovering above the midpoint, suggesting an advantage for buyers. If the price can rise above the moving averages, the bulls may attempt to push the price beyond the $12 mark. Achieving this could trigger a Chainlink price breakout above $12 towards $19. However, a downward reversal from the moving averages would suggest a potential return of bearish sentiment. Breaking below the $9 mark could amplify the selling pressure in the market.
To stay updated on these developments, consider using applications like cryptoview.io. It provides comprehensive insights and analytics on various cryptocurrencies, including Chainlink.
