A small cryptocurrency is poised for a long-term rally

A small cryptocurrency is poised for a long-term rally
A small cryptocurrency is poised for a long-term rally

Over the past 30 days, the price of CHAINLINK has risen by 22%, making it among the top 20 performing cryptocurrencies by market capitalization during this period.

But while the market is moving sideways, the question remains: will the cryptocurrency be able to sustain this rally?

Investor behavior has given ChainLink a positive outlook, according to IntoTheBlock data, with Link’s investor retention rate up 677% since the last week of July. This indicator tracks the behavior of investors, and notes whether they are selling their assets or holding them without making any transactions.

When the holding time decreases, it indicates that investors are selling, which can lead to a lower price. The rise in this indicator indicates a long-term approach to currency holding, which indicates strong confidence in the performance of the future symbol.

Moreover, this remarkable rise reduces Link’s offer for trading, which could push the price higher.

Read also:Bitcoin Price Predictions If It Succeeds in Breaching the $65K Resistance

Another critical factor contributing to Link’s positive outlook is the market capitalization-to-value (MVRV) ratio. This ratio measures market lows and highs, and reflects the level of unrealized profits or losses.

When this indicator rises, it indicates a high level of unrealized profits and increases the likelihood that investors will take profits. When the index is too high, the currency is considered overvalued, and prices may see a correction.

When the MVRV ratio decreases, it indicates a low level of unrealized profit, indicating a decrease in value. As shown in the chart, the MVRV ratio for Chainlink over 30 days is 13.56%.

Historically, when this indicator crosses this area, it tends to rise to 20%. If this historical pattern is repeated, Link’s price could continue to trade above $12.

Also, the Elder Strength Index (EFI) came out of negative territory and returned to the green zone. This indicator measures the strength of buyers and sellers in the market. If the indicator is negative, it means that bears dominate.

The recent rally suggests that the bulls are preventing the Link bears from pulling the price down. Thus, the price of Chainlink may be set to reach $13.65. If it exceeds this level, it could push the cryptocurrency towards $14.96.

On the other hand, if the bears manage to overcome the bullish momentum, the price of the symbol could drop to $10.48.

What stock should you buy in your next trade?
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