Chainlink (LINK) About to Fall Off a Cliff? The Signals You Can’t Ignore

Chainlink’s LINK token has seen a remarkable rally over the past month, surging around 30% to current levels around $8. However, data suggests the rally may be overextended and LINK could be due for a correction soon.

According to analytics provider Santiment, Chainlink’s 30-day MVRV ratio recently surpassed 20%. The last two times this ratio reached these levels, LINK underwent steep corrections, according to top analyst Ali. The MVRV ratio compares LINK’s market value to its realized value, acting as a sentiment indicator. High values suggest overextension.

In addition, LINK is approaching a key resistance zone around $8.50, which aligns with the highs from April and July. This area marks a reversal point where previous rallies have stalled out. The confluence of overbought signals and nearby resistance suggests LINK could be primed for a pullback.

On the daily chart, the recent rally in LINK appears exhausted, as shown by the bearish divergence between price and the RSI oscillator. This bearish setup would be confirmed by a break below the 21-day exponential moving average, which would open the door to a retest of support around $6.

To sum up, while Chainlink has seen impressive gains lately, multiple signs point to an overextended rally that is likely to reverse. LINK could be poised for a deeper correction of 30-40% in the near-term before finding support. Risk-averse traders may look to take profits or hedge long positions at current levels before the pullback plays out.

Check $RECQ Meme Coin

Sponsored: Invest Responsibly, Do Your Own Research.
Serves as the base currency for all transactions within the Rebel Satoshi platform
ICO stage, offering tokens at a discounted price
Facilitates a smooth and efficient economy within the arcade, supporting both arcade and in-game transactions.
Grants access to a diverse range of gaming experiences in the Rebel Satoshi Arcade,
Contributes to a decentralized, community-driven RebelSatoshi platform that integrates gaming with elements of revolution, freedom, and unity, appealing to users who value such principles.
intelligent crypto
How are  regular people making returns of as much as 70% in a year with no risk?  By properly setting up a FREE Pionex grid bot - click the button to learn more.
Crypto arbitrage still works like a charm, if you do it right! Check out Alphador, leading crypto arbitrage bot to learn the best way of doing it.


Petar Jovanović
Petar Jovanović

As the Head of Content at Captainaltcoin, I bring years of experience in the crypto industry. With a strong belief in the potential of the web3 market since 2017, I'm passionate about sharing valuable insights and knowledge. Feel free to connect with me on LinkedIn and let's discuss the exciting world of cryptocurrencies and decentralized technologies!