- Analysts have predicted that Chainlink (LINK) could surge by 50% in the near term to hit $19, however, failure to surge could see the asset falling to $9.
- Key market indicators like the Directional Movement Index (DMI) and the Market Value to Realized Value (MVRV) also confirm that LINK has a bullish outlook.
Chainlink’s (LINK) bullish potential cannot be understated as it deservingly made it into our top five list of Real-World Asset (RWA) altcoins to watch out for in October. To extensively elaborate its technical and on-chain standings, our analysts analyzed multiple indicators and discovered key thresholds and new insights in its future price moves.
Price Analysis
Firstly, analysts assessed the asset in the light of its current momentum using the Directional Movement Index (DMI). The reading was around 29.2, which was far higher than the Negative Directional Index (-DI), which stood at 13.3. According to analysts’ interpretation, buyers currently have an edge over sellers as the asset’s bullish momentum comes up stronger. Also, the Average Directional Index (ADX), had a reading of 28.2, indicating that LINK could sustain the current trend.
Another look at the LINK’s Market Value to Realized Value (MVRV) ratio shows a reading of 7.9%. This is mostly interpreted as a bullish continuation. It is important to note that the MVRV indicator primarily compares the current market value to the average market price at which the asset was purchased. A higher MVRV indicates a higher level of unrealized profits. This mostly hints at an impending selling pressure and correction. A low MVRV reading also indicates that only a few holders are in profit. This implies that the probability of a major sell-off remains low.
The MVRV value of 10% has mostly been a signal of overvaluation. In this case, the current value of 7.9%, though having more room for growth, should be constantly monitored to avoid being liquidated. In a nutshell, LINK has been predicted to rise by 50% in the near term.
More Analysis on Chainlink (LINK)
Looking at its historical charts, LINK’s Exponential Moving Average (EMA) lines formed a golden cross on September 17, and the price surged by 20% a few days after. Currently, the EMS lines are in a bullish formation. However, analysts have observed that they are not fully separated, sending a strong caution to investors.
According to traders, a closer line could suggest that the bullish trend may not fully validate and could take a nosedive.
At press time, LINK was trading at $12.4 after surging by 11% in the last seven days and 12% in the last 30 days. At the moment, the asset faces two key resistances at $13.9 and $15. A successful breakout above these levels could send the price to $19.
Alluding to this, a renowned analyst, Michael van de Poppe, recently predicted that LINK could surge by 150% to 300% against Bitcoin (BTC). Two months ago, the analyst identified $21 as a crucial resistance level that could be a key to its journey to $25 and $30 in the months ahead. However, the asset was required to first establish higher lows on the weekly timeframe to validate this thesis.
