At the time of writing this article, the cryptocurrency markets were benefiting from the rise fueled by Nvidia earnings. This also benefited altcoins. On August 23rd, the price of Bitcoin reached $26,819. BTC, which shares a positive correlation with the stock market, followed the footsteps of the US markets in its recent rally. So, what are the expectations for Chainlink (LINK)?
Chainlink (LINK) Commentary
Chainlink (LINK) price recorded an 8% recovery on Wednesday, August 23rd, despite the prevailing fear, uncertainty, and doubt (FUD) in the altcoin markets. We mentioned the factor that weakens this general market FUD at the beginning. As the statements to be made by Powell in the evening are expected to have a dovish tone, we can see the continuation of the rally in the coming hours.
On-chain data provides some signals about whether Chainlink (LINK) is on the verge of a price breakout or if bears can reverse their gains in the coming days. This data usually provides early signals for movements that can occur in a few days or weeks.
Partnerships and network integrations announced by the Chainlink team seem to have instilled confidence among long-term investors. As an indicator, the Average Coin Age of LINK decreased to 35.70. However, as of August 23rd, it reached 40.3 with a 13% increase. This data indicates the weakness of selling pressure among long-term investors.
LINK Coin Price Analysis
MVRV analyzes investors’ net financial position. The graph below shows that if those who bought LINK in the last 30 days sell early, they can experience significant losses. Therefore, LINK investors may wait until the price exceeds $7 to avoid double-digit percentage losses.
Considering the aforementioned on-chain indicators, Chainlink bulls can push the ongoing price breakout towards $10. The strong resistance level is at $7. Since the overall market sentiment remains negative, 22,560 investors who bought 273.5 million LINK at a price of $6.80 can perceive the small gain as an opportunity and strengthen the resistance level.
However, if the bulls manage to break this resistance level, the LINK price may rise towards $10. Nevertheless, bears will focus on closing below $6 to take advantage of a potential drop in BTC. If bears succeed, the price can drop to $5.
