- Chainlink (LINK) has surged nearly 50% since hitting a market bottom, driven by strong demand and bullish momentum.
- However, ongoing selling pressure from long-term holders could challenge its ability to break through the $18 resistance level.
In recent weeks, Chainlink (LINK) has captured the attention of both investors and analysts as its price action hints at the possibility of continued bullish momentum. After recovering from its recent dip and reclaiming crucial support levels, LINK bulls are hoping the rally will stretch further—possibly beyond the $18 mark.
A key indicator in the recent resurgence of LINK’s price has been the Market-Value-to-Realized-Value (MVRV) ratio, which signals whether an asset is undervalued or overvalued relative to its “fair value.” When the MVRV Z-Score drops below zero, it typically indicates a market bottom. On April 8, when LINK was priced at $11.30, the MVRV Z-Score entered the green zone, suggesting that LINK may have reached its floor. Since then, the altcoin has surged by nearly 50%, creating optimism for the months ahead.
Also read: Ripple’s RLUSD Stablecoin: Transforming Cross-Border Payments and DeFi Integration for the Future of Finance
While Bitcoin’s recent bullish trend has also positively impacted the altcoin market, Chainlink’s price has demonstrated impressive resilience. LINK’s price range recently broke above the February high of $15.52, reaching the critical $18 Fibonacci retracement level. Although the initial retest of $18 was unsuccessful, the token’s bullish momentum remains intact, signaling that another push could be on the horizon.
In addition to the price movement, the Accumulation/Distribution (A/D) index has shown consistent growth since April, indicating strong demand and increasing market participation. This sustained demand could be the catalyst needed for LINK to continue its upward trajectory and potentially reverse its six-month decline.
However, despite the positive outlook, there are some warning signs to watch out for. Mean Coin Age, which measures the average age of coins in circulation, has been showing a decline, suggesting that long-term holders are selling. This could signal difficulty in maintaining network-wide accumulation. The 180-day MVRV ratio also reveals that some long-term investors are still at a loss, which may contribute to selling pressure.
Ultimately, while Chainlink’s price is showing signs of strength, whether chainlink can maintain its bullish momentum and push past the $18 resistance level will depend on continued demand and investor sentiment in the broader crypto market. If these conditions hold, LINK could see further gains in the coming months.
