Chainlink continues to remain strong as the NVT rate decreases! Will LINK price struggle near $20?
Chainlink’s price has seen a strong rally as the market rebounds from its January lows, largely driven by Bitcoin’s impressive rise towards the $44,000 level. Surprisingly, Chainlink significantly surpassed previous resistance levels and outperformed many other top altcoins. Additionally, there is hope that LINK price may surge further with optimistic on-chain data. However, a correction may occur near key resistance levels.
NVT remains low despite price surge
Over the past 24 hours, Chainlink has witnessed significant liquidations of nearly $4.5 million. Notably, sellers contributed approximately $3.7 million of this total, meaning that selling pressure surged as LINK price moved in the opposite direction of their positions, resulting in losses.
Currently, IntoTheBlock’s on-chain data shows a rise in Netflow and positive figures worth $26.3 million for LINK. This means that holders are actively sending LINK tokens to exchanges for potential sales as inflows exceed outflows, raising concerns about increased selling pressure in the market.
It is worth noting that a significant portion of LINK holders are clustered within the price range of $18.5 to $26.5. Approximately 92.5 thousand addresses collectively hold 50.4 million LINK tokens in this category. These holders are expected to oppose further price surges as they are likely to liquidate their holdings to minimize potential losses.
Interestingly, an important on-chain indicator suggests potential bullish momentum as Chainlink’s NVT ratio shows an upward trend. Even though the network value has grown, it has decreased significantly from a high of 128 to the current level of 25. This means that Chainlink’s trading volume has seen a noticeable surge amid the price surge. This suggests a potential undervaluation of Chainlink, which could trigger a further surge in LINK price.
What’s next for LINK pricing?
Chainlink price continues to meet buyer demand by surging above the immediate Fib channel and aiming to challenge $20 resistance. However, it is important to note that after this point, strong resistance from sellers is expected. The current value of LINK is $17.97, up more than 12.6% from yesterday.
The current buying pressure is helping LINK price break out of the sub-$17 fear zone. The recent break above the moving average hinted at a possible upside towards the important $20 resistance level, where significant selling pressure from the bears is expected.
If the price experiences a sharp reversal near $20, the LINK/USDT pair is likely to remain around $17 for the long term. But you can also test it again later for $20.
To confirm the start of a new uptrend, bulls must not only break the $20 level, but also maintain the price around the $22 level. If successful, your next goal will be $25.