Chainlink’s price has seen a robust upward move, riding on the market’s rebound from its January lows, primarily driven by Bitcoin’s impressive push towards the $44,000 mark. Remarkably, Chainlink has outperformed many other top altcoins as it made a significant breakout above its previous resistance levels. Additionally, with bullish on-chain data, there’s a hope of further surges for LINK prices; however, it might come with corrections near key resistance levels.
NVT Remains Low Despite Price Surge
Over the last 24 hours, Chainlink has witnessed a significant liquidation amounting to nearly $4.5 million. Notably, sellers contributed approximately $3.7 million of this total, signifying a surge in selling pressure as the LINK price moves in a direction opposite to their positions, resulting in losses.
At present, on-chain data from IntoTheBlock indicates a rise in Netflow, with a positive reading of $26.3 million worth of LINK. This suggests that holders are actively sending their LINK tokens to exchanges for potential sales, as inflows surpass outflows, sparking concerns about an increasing selling pressure in the market.
It’s worth noting that a massive portion of LINK holders are clustered within the price range of $18.5 to $26.5. Approximately 92.5 thousand addresses collectively possess 50.4 million LINK tokens in this bracket. These holders are set to oppose any additional price surges, as their intention is likely to liquidate their holdings in an attempt to minimize potential losses.
Interestingly, a crucial on-chain metric suggests potential bullish momentum as the NVT ratio for Chainlink indicates an upward trend. It has significantly declined from a high of 128 to its current level of 25, even as the network’s value has grown. This indicates a notable surge in Chainlink’s transaction volume amid price surge. This hints at a potential undervaluation of Chainlink, which could trigger further surges for LINK price.
What’s Next For LINK Price?
Chainlink price continues to meet buyers’ demand as it surges above immediate Fib channels and aims to challenge the $20 resistance. However, it’s essential to be aware that strong resistance is expected from sellers beyond this point. At the moment, LINK is valued at $17.97, increasing over 12.6% from yesterday’s rate.
The current buying pressure is helping LINK price to escape the fear region below $17. The recent breakthrough above the moving averages has hinted at the potential for an upswing towards the crucial $20 resistance, where substantial selling pressure from bears is anticipated.
If the price experiences a sharp reversal around the $20 mark, it’s likely that the LINK/USDT pair will remain around $17 for an extended period. However, it might retest for $20 later.
To confirm the beginning of a new uptrend, the bulls must not only breach the $20 level but also maintain the price around $22. Should they succeed, their next target will be the $25 mark.