- Analytical charts indicated that LINK/BTC reached its lowest point, signaling a potential surge in the near term
- Further investigations highlighted an increasing interest in LINK, suggesting a likely upward trend in its price
LINK/USDT has seen a notable rise lately, posting a hike of 13.12% over the past week. That’s not all though since it has continued to build on this growth with gains of an additional 2.26% in the last 24 hours alone.
The price movements of LINK/USDT and LINK/BTC are increasingly interconnected, influencing each other’s market behavior.
Amid this prevailing bullish sentiment, another important factor is the latest insight from a crypto analyst who has identified LINK as trading within a key zone.
Understanding LINK’s ‘bottom out’
Popular Crypto Analyst Michaël Van de Poppe highlighted a ‘bottom out’ for the LINK/BTC trading pair, indicating the potential for LINK to begin an upward trajectory. By doing so, it might possibly hit new highs too, he claimed.
Currently trading at a lower support level, LINK may be poised for a turnaround that will propel it directly to the critical resistance point at 0.0004480. At this point, LINK may face significant selling pressure that it must overcome to continue its ascent.
Source: X
When LINK/BTC rises, it signifies that the price of Chainlink (LINK) is gaining strength relative to Bitcoin (BTC). Such gains in LINK/BTC are often mirrored by similar movements in related pairs like LINK/USD, meaning that a surge in LINK/BTC typically leads to a parallel hike in LINK/USD.
Source: TradingView
For example – The accompanying graph compared the daily price movements of LINK/BTC (in purple) and LINK/USD (in blue) starting from March. It underlined consistent patterns between the two pairs, with slight variations that eventually converge.
Support from on-chain metrics?
The Open Interest (OI) for LINK has gradually risen, according to Coinglass, signifying a growing number of unsettled derivatives contracts in the market. This metric is crucial for gauging the market’s buying or selling inclination.
An uptick in OI suggests heightened buyer interest, with investors opening positions in anticipation of LINK’s price hike on the charts.
Source: Coinglass
Further confirming this bullish sentiment is the recent struggle of short traders. Those betting on a decline in LINK’s price have faced major setbacks. In fact, over the last 24 hours alone, short positions valued at $234k have been liquidated.
Source: Coinglass
This activity underlined the dominance of long traders who are effectively driving up the price, leading to losses for those holding short positions.
Momentum is on the rise
Finally, an analysis of the Market Value to Realized Value (MVRV) and Relative Strength Index (RSI) indicators suggested that momentum for LINK is building.
The MVRV ratio, which compares the market capitalization (Market Value) to the realized capitalization (Realized Value), helps assess whether an asset is overvalued or undervalued. At press time, with its MVRV below 1, LINK would be considered undervalued, indicating a potential upward shift in its price soon.
Similarly, the RSI measures market sentiment and momentum. A reading above 50 typically signals bullish momentum. LINK’s RSI reading of 54.24 suggested that its price could continue to appreciate in the near term.
Powered by WPeMatico
