Chainlink’s LINK ‘Knocks on the Door’ of Top 10 Coins With 40% Explosion – But There’s a Big Catch
Chainlink’s LINK token has experienced a remarkable price surge over the past 3 days, with its value exploding from $7.30 to $11 per token – a 50% increase. This has propelled Chainlink to the #12 spot by market capitalization, moving past major cryptos like Polygon, Dai, and Litecoin.
Investors are excited by the gains and looking for the best entry points to potentially ride an extended rally. However, crypto expert Ali is urging caution based on Chainlink’s price history and on-chain data. Let’s examine his analysis.
What you'll learn 👉
Concerning On-Chain Metrics
According to Ali, data from Santiment shows that the last three times Chainlink’s 30-day MVRV ratio surpassed 20%, LINK underwent a steep correction shortly after.
Ali points out that LINK’s MVRV recently crossed above 20% once again, suggesting another imminent correction could occur despite the strong upside price action.
History Repeats Itself
As technical analysis shows, history tends not to forget. The patterns and data suggest Chainlink could see a pullback even as it knocks on the door of the top 10 cryptocurrencies by market cap.
Savvy traders will watch the on-chain metrics closely rather than just the exciting price movement. With the MVRV flashing warning signs, prudent entries and risk management are critical despite LINK’s explosive gains.
Ali’s evidence demonstrates the potential downside risks still lurking beneath Chainlink’s surge. While the crypto’s bullish momentum could certainly continue, investors should be cautious and wait for confirmations rather than FOMOing in at any cost. The numbers suggest a correction could arrive shortly, so patience and vigilance are key.
We recommend eToro
Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs.
Copy trading: allows users to copy the trades of leading traders, for free.
User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
