The crypto market is beginning to recover, aiding the rise in Chainlink's price. As US inflation slows, trading interest grows. However, Chainlink may face a correction due to overvaluation.
MVRV Decline and Its Significance
Chainlink's price has been surging, crossing the key $14 level, triggering significant liquidations. Coinglass data shows that sellers liquidated over $1 million, while buyers sold $470K. Despite the price surge, Chainlink's MVRV ratio fell from 1.42 to 1.13. A declining MVRV during a price surge indicates that the average last traded price of tokens does not match the current market price.
Current Situation and Chainlink Forecasts
Chainlink is showing strong growth, approaching the $15 resistance level due to significant buying interest. Its price currently stands at $14.4 after an 11.52% increase over the past 24 hours. However, the RSI nearing the overbought threshold at 78 signals a potential correction.
Potential Scenarios for LINK Price
Chainlink may retest the $14.7 level, and breaking above it could lead to $17.6. If selling pressure intensifies, LINK could fall to $11.7. The long/short ratio has risen to 2.17, indicating a fake breakout risk, as 68.5% of traders anticipate further upward movement.
Despite significant correction risks, Chainlink remains a leading altcoin due to strong development activity and robust technical support.
