- Chainlink has reclaimed key resistance levels and shows strong bullish momentum, with on-chain metrics indicating potential for further gains beyond $18.
- However, selling pressure and inconsistent transaction activity could pose short-term challenges.
Chainlink [LINK] has recently shown strong signs of bullish momentum, reclaiming previous resistance levels and pushing as high as $18 before experiencing a brief pullback. While profit-taking has slightly stalled the rally, underlying metrics suggest the bulls might not be done just yet.
After weeks of consolidation, LINK decisively broke past the $15.52 range high that had held since February. The breakout was supported by growing demand and a bullish market structure, sparking optimism for further gains. Though the token was rejected at the 61.8% Fibonacci retracement level at $18, market momentum remains firmly in buyers’ favor.
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On-chain data reinforces this optimistic outlook. The MVRV Z-Score—a key metric for assessing whether an asset is overvalued or undervalued—dropped into the green zone in early April, a sign that LINK had entered an undervalued territory. At the time, LINK traded at $11.30. Since then, the token has climbed nearly 50%, suggesting the market may have bottomed out.
The Accumulation/Distribution (A/D) indicator has trended upward since April, signaling consistent demand and accumulation. This is a bullish sign and could fuel another leg up, potentially allowing LINK to surpass the $18 level and challenge higher resistances.
However, it’s not all smooth sailing. The Mean Coin Age (MCA) has shown repeated drops since mid-March, indicating waves of selling pressure despite the broader uptrend. Similarly, the 180-day MVRV ratio remains below zero, suggesting that long-term holders are still sitting at a loss—possibly increasing the risk of more sell-offs.
The Network Value to Transactions (NVT) ratio has also declined sharply, hinting at inconsistent transaction volume. These warning signs suggest that while bulls are still in control, the rally might face headwinds in the form of uneven on-chain activity.
In conclusion, Chainlink is showing strong potential for a sustained breakout beyond $18, backed by solid technical and on-chain indicators. Yet, short-term volatility and investor behavior could dictate the pace and strength of this next move.
