Amid the ‘Uptober’ trend, Chainlink emerged as a solid altcoin that captured the spotlight. In recent weeks, the price of LINK has been making efforts to surpass the $12 mark. Nevertheless, increasing selling pressure from bears has posed a challenge to this surge. However, bulls found hope due to a significant metric shift—the NVT signal. The decline in the NVT signal indicates that the transaction volume is approaching LINK’s market capitalization, signaling bullish network activity.
Chainlink Shows Room For Another Surge
Chainlink has always remained a top choice among whale investors due to its volatility that continues to attract buyers. Recent data from IntoTheBlock reveals a surge in large transactions, reaching a massive $1.2 billion in a week. This surge in large transactions showcases increased interest from whales, driving the altcoin’s price.
In October, the NVT (Network Value to Transaction) ratio reached a peak of 160, indicating that the network was overvalued. However, in the past week, this ratio dropped significantly and has now stabilized at around 28.
This suggests that transaction volume has increased more, providing stronger support for the network’s value. Consequently, there is a higher likelihood of a price surge in order to maintain the network’s value, leading to increased buying demand. Furthermore, the MVRV ratio has experienced a strong uptick, rising from 1.27 to 1.38.
As the MVRV ratio is way too below market tops and red zone, there’s a potential boost in buyers’ confidence, suggesting more price surges in the coming days. The market cap represents the total dollar value of circulating cryptocurrency supply based on average daily exchange prices. Realized value estimates the total spent on all coins by tracking their market value during on-chain transactions. High MVRV suggests potential overvaluation, while low values indicate potential undervaluation of Chainlink.
What’s Next For LINK Price?
Chainlink price recently attempted to dip below the moving averages, but the bears failed to capitalize on this advantage. This suggests that selling pressure was converted into buying near lower price levels. As of writing, the LINK price trades at $11.2, declining over 2.1% from yesterday’s rate.
The 20-day EMA at $11.2 has leveled off, and the RSI is hovering above the midpoint, indicating an advantage for buyers. If the price manages to climb above the moving averages, the bulls may make an attempt to push the price beyond the $12 mark. Achieving this could set the price toward a breakout trend above $19.
On the flip side, a downward reversal from the moving averages would indicate a potential comeback of bearish sentiment. Breaking below the $9 mark could intensify the selling pressure in the market.