- Chainlink is currently undervalued according to its MVRV ratio at -2.74%.
- The supply of LINK tokens across cryptocurrency exchanges continues climbing, increasing the selling pressure on Chainlink.
- Large wallet investors are scooping up LINK while the token trades at a discount.
Chainlink, the web3 services platform, is currently undervalued with a negative Market Value to Realized Value (MVRV) ratio. There is a spike in selling pressure on the altcoin with increasing supply across exchanges.
Also read: XRP price rally gains momentum with massive spike in XRP Ledger activity
Chainlink is currently undervalued according to MVRV ratio
Market Value to Realized Value (MVRV) is the ratio between the market value of a crypto-asset and its realized value. This ratio is used to determine the tops and bottoms of Chainlink price.
Chainlink’s MVRV Ratio for the past thirty days -2.74%. MVRV score below one signals that an asset is undervalued.
%20[19.57.16,%2019%20May,%202023]-638201066550167744.png)
Chainlink MVRV v. price
Typically, a negative MVRV score fuels a bearish thesis for the asset and is followed by a price decline in LINK, as seen in the chart above. Therefore, LINK price is likely to experience further pullback in the short-term.
LINK supply on exchanges climbs
Interestingly, the supply of Chainlink on cryptocurrency exchanges continued to climb over the past month. This has increased the selling pressure on the altcoin as LINK price is struggling to recover from its pullback.
LINK supply on exchanges climbed from 157.23 million in the beginning of April to 159.26 million as of May 19.
Large wallet addresses holding between 10,000 and 100,000 and 100,000 and 1,000,000 LINK tokens have added to their holdings, “buying the dip” while the asset is undervalued.
%20[20.02.03,%2019%20May,%202023]-638201066924813773.png)
Chainlink accumulation by whales
Where is LINK price headed next
Chainlink price is currently in a downward trend that started in April 2022. The Fibonacci levels derived from the altcoin’s decline from its April peak of $8.341 to June lows of $5.352 help identify key support and resistance levels for LINK.
LINK is currently trading below two key long-term Exponential Moving Averages, 50-day and 200-day at $6.970 and $7.271, respectively. Equal lows at $6.791 and the 23.6% Fibonacci level at $8.418 are other key resistance levels that LINK needs to tackle in its recovery.
LINK/USD one-day price chart
If LINK price definitively closes below the trendline and nosedives from support at $5.928 the downside target is the June 2022 lows of $5.352.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.