• Chainlink price, despite the decline, has sustained above $6, right above the crucial support line at $5.9.
  • LINK investors have exhibited patience throughout the recent crash, which kept them from witnessing significant losses.
  • The MVRV ratio suggests that LINK is in the opportunity zone, which is synonymous with recoveries, last visited by the altcoin in March.

Chainlink price action was no different than most of the other cryptocurrencies in the past two weeks. As the market crashed, LINK plunged too, but the altcoin was saved from witnessing a severe drawdown thanks to its investors, whose behavior might play a crucial role in initiating recovery going forward.

Chainlink price aims at a bounce-back

Chainlink price has had a rather rough August, similar to the entire crypto market, as the cryptocurrency fell by 21.2% month to date. Trading at $6, LINK is keeping above a key support level marked at $5.9. The Relative Strength Index (RSI) denotes that while the altcoin is facing bearish pressure, it still has not reached the oversold zone.

LINK/USD 1-day chart

LINK/USD 1-day chart

A decline to $5.9 would lead to the same as the indicator dips below 30.0, which could lead to a recovery in the price action. The likeliness of the same is evinced by the Market Value to Realized Value (MVRV) ratio, which is currently sitting in the “opportunity zone”. The indicator, which measures the profit/loss witnessed by investors on a 30-day average, last visited this area back in March.

The opportunity zone is marked beyond -13%, and historically, at this point, investors tend to hold off any selling and instead switch to accumulation. This drives the demand higher and leads to a recovery in price. With the indicator around it at the time of writing, further decline would potentially trigger a similar momentum for Chainlink price.

Chainlink MVRV ratio

Chainlink MVRV ratio

Regardless, LINK holders’ patience has been one of the biggest contributors to keeping the altcoin above $5.9. As noted in the distribution of addresses by time, over the past four weeks, there has been a rise in mid-term holders (Cruisers) and a decline in short-term holders (Traders).

Chainlink address distribution

Chainlink address distribution

This shows that most of the investors have been holding on for more than a month, proving the fact that LINK holders refrained from selling and exiting during the recent crash. Maintaining sentiment will help Chainlink price recover quickly as the chances of selling at a loss are much lower at the moment.


Like this article? Help us with some feedback by answering this survey:



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


Recommended Content

Editors’ Picks

IRS says crypto staking should be taxed in response to lawsuit

IRS says crypto staking should be taxed in response to lawsuit

The IRS stated that rewards from cryptocurrency staking are taxable upon receipt, according to a Bloomberg report on Monday, which stated the agency rejected a legal argument that sought to delay taxation until such rewards are sold or exchanged.

More Cryptocurrencies News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

More Solana News
Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum Price Forecast: ETH risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

More Ethereum News
Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

Crypto Today: BTC hits new Trump-era low as Chainlink, HBAR and AAVE lead market recovery

The global cryptocurrency market cap shrank by $500 billion after the Federal Reserve's hawkish statements on December 17. Amid the market crash, Bitcoin price declined 7.2% last week, recording its first weekly timeframe loss since Donald Trump’s re-election. 

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP