Chainlink (LINK) Steady Amidst Consolidation: Insights and Opportunities
Chainlink Consolidation: A Market Overview
Chainlink (LINK) has been consolidating within a horizontal channel over the past few weeks, with resistance at $10.78 and support at $10.06. Currently, the altcoin is trading close to its support level, hovering around $10.14.
Understanding Chainlink's Market Behavior
LINK has traded within this horizontal channel since August 6, indicating a time when an asset’s price moves within a range. The upper line of this channel has become resistance, while the lower line forms support.
- This sideways movement suggests a balance between buying and selling pressures.
- Current Relative Strength Index (RSI) sits at 40.83, indicating market indecision.
Opportunity Amidst Chainlink’s Steady Performance
When the RSI remains flat, it often represents consolidation, with neither strong buying nor selling momentum. In the case of LINK, sellers remain hesitant to offload due to most transactions ending in losses.
- On-chain data from Santiment shows the daily transaction volume in profit is lower than in loss, with a ratio of 0.76.
- For LINK buyers, ongoing price consolidation has presented a buying opportunity.
MVRV Ratios Indicating Undervaluation
Assessing LINK’s market value to realized value (MVRV) ratios, we see signals indicating potential buys. The current 30-day and 90-day MVRV ratios are -10.39 and -22.73 respectively.
These metrics show LINK as potentially undervalued, providing strategic insights for market participants.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.