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Chainlink (LINK) price may continue to suffer due to a lack of network activity. Worsening the situation is the broader market data, which, despite an uptrend, has yet to gain strong momentum. What can be expected for LINK based on on-chain data and chart analysis? Let’s examine together.
What’s Happening with Chainlink?
Chainlink’s price may struggle to recover its recent losses. This is due to Chainlink’s NVT ratio reaching its highest level in four years and eight months. This signals potential future downtrends for the crypto asset. The high NVT ratio indicates that the network’s value may be overly expanded relative to its transaction volume, a situation that typically precedes a price correction. In addition to the NVT ratio, Chainlink’s Relative Strength Index (RSI) is also in the negative zone. RSI is closely monitored as a significant momentum indicator, and its current position indicates that LINK is experiencing downward momentum.
Although the rising RSI level indicates increasing bullish momentum, the altcoin may struggle to find upward momentum until the neutral line turns into support. The lack of buying pressure reflected in the RSI level may prevent significant price recovery without additional positive factors.
Given these indicators, Chainlink may need stronger cues or external factors to break out of this bearish phase.
LINK Chart Analysis
Chainlink’s price at $10.42 is far from recovering the gains lost in the recent drop. With the altcoin’s value at a ten-month low, LINK may need more than just these on-chain data to push it back up. For now, the most likely outcome seems to be consolidation below the $11.00 level. The chance of breaking above this is somewhat low, and it may remain in the range above $9.35.
However, if it turns the $11.00 level into support, the altcoin may record an uptrend and potentially surpass the $11.99 level. Breaking this resistance will invalidate the bearish thesis and allow for further recovery.
