As the market leader Oracle blockchain, Chainlink (LINK) appears to be garnering more interest as discussions about the tokenization of real-world assets (RWA) increase. An analyst’s on-chain analysis suggests that LINK could capture a 50% gain from its current prices in the coming weeks.
Analyst’s Commentary on Chainlink
Ali Martinez shared his Chainlink analysis on April 17 on platform X. Martinez highlighted the historical view involving LINK’s price and the 30-day Market Value to Realized Value (MVRV) ratio.
Ali Martinez stated:
Whenever the Chainlink MVRV 30-Day Ratio has dropped below -12.24% since August 2022, it has indicated a significant buying opportunity with an average return of 50%! Currently, the LINK MVRV 30-Day Ratio is at -17.54%. This could be another chance to buy at the bottom!
Looking back, LINK has experienced value increases of 53%, 37%, 55%, 49%, 80%, and 49% following this model. If this pattern emerges again, Chainlink investors could achieve significant gains from current levels.
Chainlink (LINK) Price Analysis
LINK has fallen below $13, testing a crucial short-term support level. This drop below the critical $13.27 level could signify a loss of significant support. Previously, this level had served as a strong support for Chainlink’s price in November 2023 and January 2024.
During this period, the 50-day Exponential Moving Average (EMA) was a notable point and had reinforced the observed support level. As of today, LINK has lost the 50-EMA, currently at $17.45 per token.
Additionally, the Relative Strength Index (RSI) also presents a different scenario, indicating a downturn under weak momentum. On the other hand, the current oversold 24-hour RSI could generally be considered a buying signal.
In conclusion, Ali Martinez may have highlighted a solid outlook for Chainlink, pointing to a potential 50% increase. Such a price rally could elevate LINK to around $20, potentially testing a critical resistance level above the 50-day EMA.
